Leading international law firm, Baker McKenzie, has advised the shareholder of Innovative Care Trading Co. (“New You”), which owns Riyadh-based New You Medical Center, the leading day surgery medical and beauty center in Saudi Arabia focused on bariatric procedures, on the sale of a majority equity stake to Nomu-listed Arabian International Healthcare Holding Co. (“Tibbiyah”), the healthcare arm of Al Faisaliah Group. The consideration is structured through a combination of cash and earn-out payments. The transaction is subject to a number of pre-closing conditions, including obtaining the approval of the Saudi Arabian General Authority for Competition as well as other conditions of a regulatory and commercial nature. Announced on 13 March, the deal is the largest in the regional cosmetic and bariatric surgery space, highlighting the strong continuing demand for elective cosmetic medical services.
Commenting on the transaction, Osama Audi, Head of Corporate/M&A, UAE offices, said, “We are very proud that our market-leading healthcare practice has been trusted by the shareholders of New You to advise on this strategic transaction which we understand is the first step in expanding and diversifying their market-leading business. The deal also represents Tibbiyah's first major healthcare services acquisition. Our understanding is that the transaction is one of the largest in the regional healthcare services sector, which is one of the main focus areas of Saudi Vision 2030.”
Moreover, Abeer Jarrar, Partner, Corporate M&A and Capital Markets added, “The successful sale of New You is a key step for Saudi’s healthcare sector and aligns with the country’s efforts to maintain a robust and effective health system that aims to better serve citizens, residents and visitors in the future. We are truly delighted to have supported our client on this vital transaction as we expect the healthcare industry to continue to grow in Saudi and across the region in the coming years.”
The team was led by partners Osama Audi and Abeer Jarrar with further support from Stephanie Samuell, Haya Massoud, Jaanzeb Khan and Aman Al Tawil.
KPMG Professional Services acted as lead business advisers to New You.
This is the latest example of the Firm’s work advising on high profile and complex transactions in the Middle East and reconfirms the Firm’s position as a transactional powerhouse.