United Arab Emirates- Gulf Pharmaceutical Industries (Julphar) announced the signature of an agreement to fully acquire (Planet Pharmacies LLC.), one of the leading regional distributors for medicines in the United Arab Emirates, Saudi Arabia, and the Sultanate of Oman.
This step will positively contribute to the financial performance of Julphar, as of the third quarter of this year 2021.
Julphar, which previously owned a 40% stake in Planet Pharmacies, announced the completion of the acquisition of the remaining 60% stake, which was previously owned by Kamco Invest private equity funds and co-investors.
This strategic addition of Planet Pharmacies to Julphar’s portfolio will expand the group’s capabilities in the areas of manufacturing and marketing existing pharmaceuticals in the distribution and retail sectors of the pharmaceutical sector throughout the UAE, Saudi Arabia, and Oman, and it is also expected to provide more aspects of support and consolidate the level of integration within the group.
The strong network of Planet Pharmacies, which includes 235 pharmacies and two large distribution centers, provides a unique platform that helps Julphar secure ideal opportunities for expansion and entry into a new business and gives it a competitive advantage within the regional healthcare sector to increase its overall market share, especially within the GCC countries. Gulf Cooperation.
Sheikh Saqer Humaid Al Qasimi, Chairman of Julphar’s Board of Directors, said: “This important transaction comes as part of our strategic efforts in Julphar to enhance shareholder value by entering into new lines of business and acquiring a larger market share in several of the group’s core markets. Julphar is currently one of the companies Leading pharmaceuticals in the MENA region, and with our full acquisition of Planet Pharmacies, we will have a real growth opportunity across the healthcare market value chain.”
He added, “By bringing together the strengths of Julphar and Planet, we will continue to work to consolidate our leading position in the region’s markets, especially in aspects related to production, distribution, and retail. This full acquisition will have a positive impact on cash flows and will provide higher flexibility in the distribution sector while allowing us to differentiate our products at the point of sale.”
Dr. Essam Farouk, CEO of Julphar, said: “Planet Pharmacies is an important link in our value chain, especially since its activities cover the wholesale and retail sectors, making it one of the leading pharmacy chains in the region. Therefore, completing this acquisition will help us manufacture, distribute and sell our products in more efficient ways.”
Farouk added: “Through our complete acquisition of Planet Pharmacies, we will be able to create an integrated value chain for medicines from start to the end, starting from production, manufacturing, and distribution to reaching the final consumer. This will lead to offering products at competitive prices and delivering them in an efficient and high-quality way. Our new strategy aimed at strengthening Julphar’s presence in the market, this acquisition will also allow us to accelerate the growth of our business in the region.”
Julphar is well-equipped to expand its leadership position in the market and to continue its mission to ensure that people in the region and the world have access to the best quality and affordable healthcare solutions in a variety of areas while providing valuable medicines that ensure a real impact in the communities in which it operates.
Since its start in 2007, Planet Pharmacies has been able to achieve tremendous growth, with its operations expanding outside the UAE, to reach the Kingdom of Saudi Arabia and the Sultanate of Oman.
The company embarked on implementing its successful expansion strategy by acquiring large pharmacy chains, establishing new pharmacies in different cities, in addition to offering wholesale distribution rights to new agencies from regional and international pharmaceutical manufacturers.