UAE’s Julphar divests Zahrat Al Rawdah Pharmacies

Gulf Pharmaceutical Industries (Julphar), one of the largest pharmaceutical manufacturers in the Middle East and Africa, has announced the divestment of its retail pharmacy operations in Saudi Arabia, specifically Zahrat Al Rawdah Pharmacies, to BinDawood Holding for a total cash consideration of SAR444.1m.

The transaction, which is subject to customary approvals, marks a strategic shift for Julphar as it aims to enhance its financial position and streamline operations.

Zahrat Al Rawdah, a wholly-owned subsidiary of Julphar, operates 173 pharmacy outlets across Saudi Arabia.

Divestment aligns with Julphar’s plans for pharma portfolio

The divestment aligns with Julphar’s ongoing strategy to offload non-core assets and focus on high-growth areas within its pharmaceutical portfolio.

Proceeds from the sale will be reinvested into developing value-added and specialty pharmaceutical products, with plans to expand manufacturing capabilities in the kingdom.

Sheikh Saqer Bin Humaid Al Qasimi, chairman of Julphar, stated, “This divestment is a further step in our strategy to unlock value for our shareholders while concentrating on our core business.”

Dr Basel Ziyadeh, CEO of Julphar, emphasised the company’s commitment to strengthening its manufacturing and commercialization activities in Saudi Arabia, citing attractive growth opportunities that align with the company’s long-term strategic goals.

On the other side of the transaction, BinDawood Holding, a prominent retail conglomerate operating Danube and BinDawood grocery stores, sees the acquisition as a significant enhancement to its health and wellness offerings.

Dr Abdulrazzaq BinDawood, chairman of BinDawood Holding, remarked, “Integrating pharmacy services into our stores enhances customer convenience and reflects our commitment to sustainable growth.”

Ahmad AR BinDawood, CEO of BinDawood Holding, noted that this move not only supports Saudi Arabia’s Vision 2030 but also positions the company as a pioneer in the retail sector by providing seamless access to healthcare products alongside everyday essentials.

The divestment is part of a broader trend in the pharmaceutical industry where companies are focusing on core competencies and strategic growth areas in response to evolving market demands.

Julphar’s pipeline includes approximately 100 products at various development stages, with plans for future launches that leverage its strengthened position post-divestment.