Cairo - Integrated Diagnostics Holdings (IDH) has signed a Joint Venture (JV) agreement with Al Makhbaryoun Al Arab (Biolab) and Izhoor Holding Medical Company (Izhoor) to launch a new diagnostic venture in Saudi Arabia.
IDH Group (IDH and its Jordanian subsidiary Biolab) will own 50% of the new JV and the remaining 50% will be owned by Izhoor, a company owned by Fawaz Alhokair, Chairman of the renowned Saudi retail group, Fawaz Alhokair Group, according to a press release on Monday.
The proposed transaction has an estimated investment cost of $19.70 million (SAR 73.70 million). IDH’s equity investment into the venture is estimated to stand at $4.70 million, of which $2.80 million will come from the holding company and $1.90 million from Biolab.
The new venture’s operations are targeted to begin within four to six months from the signing of the agreement on 27 October 2022, subject to the receipt of all necessary regulatory approvals and licences.
Through this strategic partnership, IDH will enter the attractive Saudi Arabian healthcare market, further expanding the company’s geographic footprint and patient pool.
Hend El Sherbini, IDH CEO, said: “The Kingdom represents an attractive new market for IDH with ample room for future growth, and provides us with an opportunity to positively impact the lives of hundreds of thousands of patients over the coming years. This deal is directly in line with our long-term regional expansion strategy which sees us pursue high-growth markets.”
Amid Abdelnour, Biolab’s Founder and CEO, added: “This deal represents an important opportunity for Biolab to replicate our success in Jordan in another high potential market like that of Saudi Arabia, and it is with great pride that we take on the operator role in this new venture.”
The Saudi government has been investing significant resources in the healthcare sector, with 14.40% of the 2022 budget being spent on healthcare.
Fawaz Alhokair, Izhoor’s Founder and Chairman, commented: “This transaction represents a significant milestone for our newly launched healthcare initiative, and a key step in the development of our unique healthcare ecosystem. We believe the combination of Biolab/IDH’s operational and medical capabilities with our successful track record in developing and expanding retail concepts in the Kingdom are key success factors.”
IDH and Biolab have appointed Khalifeh & Partners to act as their legal advisors on the transaction. In the meantime, Izhoor has hired The Law Firm of Wael A. Alissa in association with Dentons as their legal advisors.
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