Riyadh – Mubasher: Arabian International Healthcare Holding Company (Tibbiyah) has completed the acquisition of a 51% stake in Innovative Care Company - New You Medical Center for up to SAR 213.5 million.
The acquisition will be fully consolidated into Tibbiyah’s financials with the impact set to reflect in the third quarter (Q3) of fiscal year (FY) 2022, according to a bourse statement on Tuesday.
Tibbiyah noted it obtained all regulatory approvals, including the non-objection certificate received from the General Authority of Competition (GAC).
“This value accretive transaction will see Tibbiyah acquire a controlling 51% stake in Innovative Care Company, which owns New You Medical Center and iPharma, through a cash payment of SAR 109.5 million with the balance of up to SAR 104 million linked to an earn-out structure over three years,” the statement read.
The acquisition offers a compelling value creation proposition for Tibbiyah as NewYou’s current operations generate steady annual revenues worth more than SAR 120 million with earnings before interest, taxes, depreciation, and amortization (EBITDA) margins well above 30%.
