Mezzan Holding acquires majority stake in KSPICO, Kuwait's only pharma manufacturer

Acquisition boosts Mezzan position in GCC's growing pharmaceutical market

  

Kuwait: Mezzan Holding one of the largest manufacturers and distributors of food, beverage, FMCG and healthcare products in the Gulf, today announced that the successful acquisition of a 67% stake in Kuwait Saudi Pharmaceutical Industries Company KSCC (“KSPICO” or the “Target”), Kuwait’s only manufacturer of pharmaceutical products. The acquisition will grant Mezzan majority Board seats and effective control of KSPICO and will enable Mezzan bolster its capabilities and offerings in the healthcare space, a vital and growing consumer segment.

Transaction highlights:

  • Industry: Manufacturing of Pharmaceutical and healthcare products
  • Buyer: Mezzan Holding
  • Target: Kuwait Saudi Pharmaceutical Industries Co.
  • Stake: c. 67%
  • Value: KD21mn

Mezzan Holding Executive Vice Chairman, Mohammed Jassim Al Wazzan said, “KSPICo is one of Kuwait’s untold success stories. The company has a great track-record and a unique market position that complements Mezzan’s business. Upon completion, this acquisition will mark a turning point in our healthcare businesses, transforming it overnight from a distribution-based business into a manufacturing and distribution business with a wide array of product lines, customers, and regulator certifications. The company has a seasoned-management that we look forward to not only working with to grow current business, but also to expand it into new value added production lines, contract manufacturing with renowned international producers and investment in research & development”.

Mezzan Chief Executive Officer, Garrett Walsh, added “this acquisition marks a significant addition to Mezzan’s core consumer driven business and expanding its access to the local and regional consumer spending. Mezzan will focus its efforts on further growing KSPICO’s market share locally and regionally, growing utilization of manufacturing and improve product mix to help drive growth and profitability.

-ENDS-

About KSPICO:

KSPICO was established in 1994 and is a well-reputed Kuwait-based manufacturer of pharmaceutical products including Large Volume Parenteral Solutions (LVP), oral solids, oral liquids, Semi solids and suppositories.  With distribution across GCC and elsewhere, KSPICO is one of the few regional companies which meets the GCC Health Institutions and SGH standards (Secretariat General of Health, KSA), enabling it to compete for bids and tenders across the GCC.

About Mezzan Holding:

Mezzan Holding is a 70-year old company that was listed on the Kuwait Stock Exchange in the second quarter of 2015. The company is headquartered in Kuwait with direct operational activities in Kuwait, UAE, Qatar, Saudi Arabia, Iraq, Jordan, and Afghanistan. Key to note that Mezzan currently operates 14 licensed pharmacies across Kuwait, and is the exclusive distributor of a number of reputable pharmaceutical brands including Mundipharma and ACINO which they distribute through the Ministry of Health, pharmacy outlets, hospitals and other distributors and retailers.

According to IQVIA (formerly known as IMS health and Quintiles), pharmaceutical sales in the Gulf reached $12.38 billion in 2018, growing 12% last year alone.

For more information, please contact:

Fawaz Al-Sirri | +965 66622448 | fawaz@bensirri.com 

© Press Release 2019

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