UAE’s Gulf Pharmaceuticals Industries (Julphar) has entered into an agreement to fully acquire Dubai-based pharmaceutical company Planet Pharmacies as it intends to expand its business in the region.
Julphar, which previously owned a 40 percent stake in the company, has completed the acquisition of the remaining 60 percent stake, which was formerly owned by Kamco Invest private equity funds and co-investors.
The strategic addition of Planet Pharmacies to Julphar’s portfolio expands the existing pharmaceutical production and marketing capabilities of the group into the distribution and retail segments of the pharmacy healthcare sector across the UAE, Saudi Arabia, and Oman.
According to the company, the transaction is projected to create considerable synergies and improve the group’s level of integration.
“Planet Pharmacies is a crucial part of our value chain as a wholesaler and one of the leading pharmacy chains in the region. Completing this acquisition will allow us to manufacture and more effectively distribute and sell our products. By fully acquiring Planet Pharmacies, we will create end to end pharma value chain from production, manufacturing, distribution, and retail. This translates into competitive pricing and the efficient delivery of our quality products. As part of our new strategy to enhance Julphar’s presence in the market, this acquisition will also allow us to accelerate the growth of our business in the region.”
Sheikh Saqer Humaid Al Qasimi, Chairman of the Board, Julphar said, “This vital deal comes as part of Julphar’s strategic efforts to boost shareholder value by delving into new business lines and capturing greater market share in several core markets of the group. Julphar is among the leading pharmaceutical companies in the MENA region and with the full acquisition of Planet Pharmacies, the company will be opening a genuine growth opportunity across the value chain in the health care market.”
“By combining the strengths of Julphar and Planet, we will continue to build on our market-leading position in the region when it comes to production, distribution, and retail. This full acquisition will have a positive impact on cash flows, offer more flexibility in terms of distribution, and allow us to differentiate our products at the point of sales,” Mr. Al Qasimi added.