Blab Business
Al Majed for Oud Pursues Regional Expansion with Planned Acquisition of Al Safa Pharmaceuticals
On 13 June, Riyadh‑based Al Majed for Oud announced a non‑binding agreement to acquire Al Safa Pharmaceuticals and Medical Supplies, a move that could broaden the company’s footprint in the Gulf’s pharmaceutical and medical‑supply market.
The announcement, made through a statement issued by Mubasher, outlines that Al Majed for Oud intends to take over the sellers’ ownership interests in Al Safa Pharmaceuticals and Medical Supplies. The deal is described as non‑binding, meaning that the parties have not yet entered into a definitive purchase agreement.
Under the terms disclosed, the parties have agreed on an enterprise value of SAR 392 million. The value is subject to reduction and adjustment based on net debt and other adjustments that will be negotiated in a later definitive agreement. The offer will terminate if a binding acquisition agreement is not executed within six months from the announcement date, unless the parties agree to extend that period.
Al Majed for Oud’s plan also includes the acquisition of several related entities that operate in the region. These include Natural Touch, UAE‑based Safa Al Khaleej Trading LLC, Bahrain’s The Beauty Secrets W.L.L, Qatar’s Wahat Alsafa for Trading Company W.L.L, and Oman’s Al Safa National Investment Company LLC. The inclusion of these companies suggests that the transaction is aimed at consolidating a network of suppliers and distributors across the Gulf Cooperation Council (GCC) states.
The company’s statement notes that Al Majed for Oud is expected to pay cash dividends valued at SAR 100 million for 2025. While the source does not provide a rationale for the dividend, it indicates that the company intends to distribute a portion of its earnings to shareholders regardless of the outcome of the acquisition.
Al Safa Pharmaceuticals and Medical Supplies has a regional presence in the pharmaceutical and medical‑supply sector, serving customers in Saudi Arabia, the UAE, Bahrain, Qatar, and Oman. The company’s portfolio includes a range of pharmaceutical products, medical devices, and related consumables. By acquiring Al Safa, Al Majed for Oud would gain access to established supply chains, regulatory approvals, and a customer base that spans multiple GCC markets.
Industry analysts view the proposed acquisition as part of a broader trend of consolidation in the Gulf’s healthcare supply chain. Several regional players have been pursuing mergers and acquisitions to achieve economies of scale, expand geographic reach, and strengthen their bargaining power with manufacturers and distributors.
The announcement comes at a time when the GCC pharmaceutical market is expected to grow at a compound annual growth rate of around 6 % over the next five years, driven by rising healthcare spending and an aging population. A successful integration of Al Safa’s operations could position Al Majed for Oud to capture a larger share of this expanding market.
No financial details beyond the enterprise value have been released, and the definitive agreement has not yet been signed. The parties have indicated that the transaction will be subject to customary due‑diligence reviews, regulatory approvals, and the negotiation of definitive terms.
Al Majed for Oud’s board has not yet issued a formal statement regarding the strategic rationale or expected synergies of the deal. The company’s website does not provide additional context on its current portfolio or strategic priorities.
The six‑month window for finalizing the binding agreement places a time constraint on the parties. If the deal is not completed within that period, the offer will lapse, and Al Majed for Oud will need to reassess its expansion strategy.
The announcement was made in Riyadh, a city that hosts a growing number of healthcare and pharmaceutical companies. The city’s proximity to major Gulf markets and its status as a regional business hub could facilitate the integration of Al Safa’s operations.
In summary, Al Majed for Oud has entered a non‑binding agreement to acquire Al Safa Pharmaceuticals and Medical Supplies, valuing the transaction at SAR 392 million. The deal includes several related entities across the GCC and is subject to a six‑month deadline for a definitive agreement. The company also plans to pay cash dividends of SAR 100 million in 2025. The outcome of the transaction will depend on due‑diligence findings, regulatory approvals, and the parties’ ability to negotiate final terms.
The announcement, made through a statement issued by Mubasher, outlines that Al Majed for Oud intends to take over the sellers’ ownership interests in Al Safa Pharmaceuticals and Medical Supplies. The deal is described as non‑binding, meaning that the parties have not yet entered into a definitive purchase agreement.
Under the terms disclosed, the parties have agreed on an enterprise value of SAR 392 million. The value is subject to reduction and adjustment based on net debt and other adjustments that will be negotiated in a later definitive agreement. The offer will terminate if a binding acquisition agreement is not executed within six months from the announcement date, unless the parties agree to extend that period.
Al Majed for Oud’s plan also includes the acquisition of several related entities that operate in the region. These include Natural Touch, UAE‑based Safa Al Khaleej Trading LLC, Bahrain’s The Beauty Secrets W.L.L, Qatar’s Wahat Alsafa for Trading Company W.L.L, and Oman’s Al Safa National Investment Company LLC. The inclusion of these companies suggests that the transaction is aimed at consolidating a network of suppliers and distributors across the Gulf Cooperation Council (GCC) states.
The company’s statement notes that Al Majed for Oud is expected to pay cash dividends valued at SAR 100 million for 2025. While the source does not provide a rationale for the dividend, it indicates that the company intends to distribute a portion of its earnings to shareholders regardless of the outcome of the acquisition.
Al Safa Pharmaceuticals and Medical Supplies has a regional presence in the pharmaceutical and medical‑supply sector, serving customers in Saudi Arabia, the UAE, Bahrain, Qatar, and Oman. The company’s portfolio includes a range of pharmaceutical products, medical devices, and related consumables. By acquiring Al Safa, Al Majed for Oud would gain access to established supply chains, regulatory approvals, and a customer base that spans multiple GCC markets.
Industry analysts view the proposed acquisition as part of a broader trend of consolidation in the Gulf’s healthcare supply chain. Several regional players have been pursuing mergers and acquisitions to achieve economies of scale, expand geographic reach, and strengthen their bargaining power with manufacturers and distributors.
The announcement comes at a time when the GCC pharmaceutical market is expected to grow at a compound annual growth rate of around 6 % over the next five years, driven by rising healthcare spending and an aging population. A successful integration of Al Safa’s operations could position Al Majed for Oud to capture a larger share of this expanding market.
No financial details beyond the enterprise value have been released, and the definitive agreement has not yet been signed. The parties have indicated that the transaction will be subject to customary due‑diligence reviews, regulatory approvals, and the negotiation of definitive terms.
Al Majed for Oud’s board has not yet issued a formal statement regarding the strategic rationale or expected synergies of the deal. The company’s website does not provide additional context on its current portfolio or strategic priorities.
The six‑month window for finalizing the binding agreement places a time constraint on the parties. If the deal is not completed within that period, the offer will lapse, and Al Majed for Oud will need to reassess its expansion strategy.
The announcement was made in Riyadh, a city that hosts a growing number of healthcare and pharmaceutical companies. The city’s proximity to major Gulf markets and its status as a regional business hub could facilitate the integration of Al Safa’s operations.
In summary, Al Majed for Oud has entered a non‑binding agreement to acquire Al Safa Pharmaceuticals and Medical Supplies, valuing the transaction at SAR 392 million. The deal includes several related entities across the GCC and is subject to a six‑month deadline for a definitive agreement. The company also plans to pay cash dividends of SAR 100 million in 2025. The outcome of the transaction will depend on due‑diligence findings, regulatory approvals, and the parties’ ability to negotiate final terms.
