Zahrat Al Rawdah, a fully owned subsidiary of Julphar, runs 173 pharmacy locations throughout Saudi Arabia.
Gulf Pharmaceutical Industries (Julphar), one of the largest pharmaceutical manufacturers in the Middle East and Africa, has announced the sale of its retail pharmacy operations in Saudi Arabia, specifically Zahrat Al Rawdah Pharmacies, to BinDawood Holding for a total cash consideration of SAR 444.1 million.
This transaction, which is pending customary regulatory approvals, represents a strategic shift for Julphar as it seeks to improve its financial standing and streamline its operations.
Zahrat Al Rawdah, a wholly-owned subsidiary of Julphar, operates 173 pharmacy locations throughout Saudi Arabia.
The divestment is aligned with Julphar's ongoing strategy to sell non-core assets and concentrate on high-growth areas within its pharmaceutical portfolio.
The proceeds from this sale will be reinvested into the development of 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, highlighted the company’s commitment to bolstering its manufacturing and commercialization efforts in Saudi Arabia, pointing out the attractive growth opportunities that align with the company’s long-term strategic goals.
On the other side of the deal, BinDawood Holding, a leading retail conglomerate that operates Danube and BinDawood grocery stores, views the acquisition as a significant enhancement to its health and wellness offerings.
Dr. Abdulrazzaq BinDawood, chairman of BinDawood Holding, commented, “Integrating pharmacy services into our stores enhances customer convenience and reflects our commitment to sustainable growth.”
Ahmad AR BinDawood, CEO of BinDawood Holding, added that this move not only supports Saudi Arabia’s Vision 2030 but also positions the company as a leader in the retail sector by providing seamless access to healthcare products alongside everyday essentials.
This divestment is part of a broader trend within the pharmaceutical industry where companies are focusing on their core competencies and strategic growth areas in response to changing market demands.
Julphar’s pipeline includes around 100 products at various stages of development and plans for future launches that will leverage its strengthened position following this divestment.
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