Abu Dhabi-based investment group Yas Holding has bought Al Ittihad Drug Store (IDS), a major pharmaceutical distributor in the UAE, to strengthen its healthcare portfolio.
The company completed the deal through its subsidiary GlobalOne Healthcare Holding (GHH), Yas Holding said in a statement on Tuesday. However, it did not disclose the total value of the deal.
“IDS provides a robust platform that complements our strengths in the pharmaceutical sector,” said Murshed Al Redaini, group chief executive of Yas Holding, adding that the investment is in line with the company's focus to establish a "well-entrenched healthcare business”.
Set up in 1968, IDS partners with multinational companies in the UAE to supply different products for the treatment of asthma, hypertension, diabetes and cardiovascular diseases, among others, according to the statement.
“This acquisition aligns with our overall strategy, since we view the business as an attractive opportunity offering substantial synergies,” Ashraf Radwan, chief executive of GHH, said.
GHH completed three acquisitions last year. These included Gulf Inject, a local manufacturer of intravenous fluids, Geltec Healthcare, which makes dietary supplements in soft gel or tablet form, and WellPharma Medical Solutions.
“Our ability to penetrate all consumer channels is a critical component of our healthcare value chain," Suresh Vaidhyanathan, group chief financial offer of Yas Holding, said. "IDS significantly enhances this capability along with a strong product portfolio that complements our growing ecosystem in health care.”
Investments in the healthcare sector have been growing amid the pandemic. Earlier this month, Abu Dhabi holding company ADQ merged its health care subsidiaries with Alpha Dhabi’s Pure Health Medical Supplies to create the UAE’s largest healthcare provider.
Other major deals in the healthcare sector in 2021 include International Holding Company's agreement to buy a 40 per cent stake in Response Plus Medical Services, a unit of VPS Healthcare.
Dubai-listed investment company Amanat Holdings acquired Cambridge Medical and Rehabilitation Centre for $232 million in one of the region's biggest healthcare deals in March.