Arabian International Healthcare Holding Company (Tibbiyah), a leading integrated healthcare solutions provider in Saudi Arabia, has acquired a 51 percent stake in Innovative Care Company, which owns Riyadh-based medical and beauty center, “New You Medical Center”, for up to $57 million.
Established in 2016, the New You Medical Center operates in a single building comprising eight specialized medical units employing world-class doctors and elite health care providers. Having built a solid reputation and a loyal customer base, New You is the preferred destination for patients seeking treatment in areas including obesity, plastic surgery, Cosmetic Gynecology, dentistry, dermatology and more.
“The acquisition is in line with our strategy to diversify Tibbiyah’s portfolio by adding exposure to the specialized private healthcare services sector, including through transactions in growth companies adding sustainable annuity-type revenues and high margin to our portfolio of activities. The specialized clinical services market offers exciting potential in the Kingdom and we look forward to our partnership with New You Medical Center to unlock New You’s full potential and further expand the business in other parts of the Kingdom.”
Professor Aayed Alqahtani, CEO and owner of New You, said that “Tibbiyah established by Al Faisaliah Group, as a healthcare industry expertise, combined with their financial and technical support, make them the ideal partner to shoulder our long-term growth ambitions by replicating our successful model in the Kingdom.”
This value accretive transaction will see Tibbiyah acquire a controlling stake in Innovative Care Company, which owns New You Medical Center and iPharma, through a cash payment of $29 million with the balance of up to $27.6 million linked to an earn-out structure over three years.