Gulf Pharmaceutical Industries Julphar acquires full control of Planet Pharmacies LLC
Gulf Pharmaceuticals Industries (Julphar) has signed an agreement to acquire full control of Planet Pharmacies LLC, one of the leading regional pharmaceutical distributors in the United Arab Emirates, the Kingdom of Saudi Arabia, and the Sultanate of Oman, in a move that will contribute positively to Julphar's financial performance from the third quarter of 2021.
Julphar, which previously held a 40% equity stake in the company, announced the completion of the acquisition of the remaining 60% stake, previously held by Kamco Invest private equity funds and co-investors. The strategic addition of Planet Pharmacies to Julphar’s portfolio extends the existing pharmaceutical manufacturing and marketing capabilities of the group into the distribution and retail segments of the pharmacy healthcare sector across the UAE, KSA, Oman. The transaction is expected to add significant synergies and further enhance the level of integration within the group.
The strong network of Planet Pharmacies, which includes 235 pharmacy stores and two extensive distribution hubs, provides a unique platform for Julphar to secure new business expansion opportunities and gives a competitive advantage to the group within the regional healthcare sector to increase its overall market share, especially within the GCC.
Sh. 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.” he stated.
Dr. Essam Mohamed, Chief Executive Officer of Julphar, said: “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.” he added.
Julphar is ideally equipped to expand its leading market position and continue in its mission to ensure that people in the region and across the world have better access to high-quality and affordable healthcare solutions in many areas with value-adding medicines that provide real impact in the communities it operates in.
Since its establishment in 2007, Planet Pharmacies has experienced exponential growth with its operations expanding outside the UAE to reach Saudi Arabia and Oman. The company embarked on implementing its successful expansion strategy through acquiring a large retail chain of pharmacies, setting up new pharmacies across different cities, in addition to introducing the wholesale distribution rights of new agencies from regional and international pharmaceutical manufacturers.