Mezzan Buys Kuwaiti Pharma Company
Mezzan Holding, one of the Arabian Gulf’s largest manufacturers and distributors of food, beverage, FMCG and healthcare products, has bought a 67% stake in Kuwait Saudi Pharmaceutical Industries Company (KSPICO).
The deal bolsters Mezzan’s capabilities and offerings in the growing healthcare sector, giving the group majority board seats and effective control of KSPICO, which is Kuwait’s sole manufacturer of pharmaceutical products.
The transaction was valued at 21 million Kuwaiti Dinar, or $69 million.
“This acquisition marks a significant addition to Mezzan’s core consumer-driven healthcare business and expands its access to local and regional consumer spending,” said Mezzan CEO Garrett Walsh. “In the coming few months, Mezzan will focus its efforts on further growing KSPICO’s market share locally and regionally, growing utilization of manufacturing and entering contract manufacturing as well as bringing the Mezzan discipline and balance sheet management into KSPICO to help drive growth and profitability.”
The acquisition comes soon after Mezzan’s recent expansion into the healthcare space. The Kuwaiti group announced in June that one of its fully owned subsidiaries was forming a joint venture to sell and distribute Medtronic and Covidien medical products and equipment for healthcare needs in the state. Medtronic regards itself as the world’s largest medical device company. It bought rival Covidien in January 2015 for around $43 billion.
Mezzan owns 51% of the jv. Further details were not disclosed.