Fakeeh Care signs SAR 1.6B deal to fully acquire Dr. Mohammad Alfagih Co.

Logo of Dr. Soliman Abdel Kader Fakeeh Hospital Co. (Fakeeh Care)

Dr. Soliman Abdel Kader Fakeeh Hospital Co. (Fakeeh Care) signed on May 5 a binding share purchase agreement with shareholders of Dr. Mohammed bin Rashid Alfagih & Partners Co. to acquire 100% of the latter's share capital for SAR 1.6 billion.

The company stated in a Tadawul filing that completion of the transaction is subject to several conditions, including obtaining no-objection from the General Authority for Competition and securing approvals from certain contracting parties with the target company. This is in addition to ensuring that no regulatory or legal restrictions arise that would prevent completion, along with other agreed conditions.

The agreement includes mechanisms to prevent any value leakage in the target company and to compensate Fakeeh Care in case any such issues are identified.

The selling shareholders have also provided customary commercial, tax, and financial warranties regarding the target company. The agreement defines the terms governing breaches of these commitments, including claim procedures, types of breaches, and allowable claim periods.

The deal will expire after six months if the conditions are not met or waived, or earlier at the buyer’s discretion in the event of a material breach by the sellers or a material adverse event affecting the target company (as defined in the agreement).

The agreement also contains standard provisions typical for such transactions, including confidentiality, termination, and dispute-resolution clauses.

The selling shareholders of Dr. Mohammed Alfagih Co., who collectively own 100% of the company, are as follows:

The transaction will be financed through a mix of Fakeeh Care's internal resources and bank financing facilities under terms consistent with the group’s existing credit arrangements.

Dr. Mohammed Alfagih Co., established in November 2013, is a Saudi joint-stock company that owns and operates a multi-specialty general hospital in Riyadh, which opened in October 2022 and provides a range of clinical services.

The target company operates a medical complex with a built-up area of 93,000 square meters, consisting of a main hospital building and adjacent outpatient clinics. It has a maximum capacity of 350 beds and 192 outpatient clinics. As of Dec. 31, 2025, the hospital was operating 238 beds and 109 active clinics, with significant room for expansion without major additional capital expenditure in the medium term.

Dr. Mohammed bin Rashid Alfagih reported revenues of SAR 466 million in 2025 and EBITDA of SAR 112 million.

The acquisition aligns with Fakeeh Care's strategy to expand its presence in Riyadh and strengthen its multi-specialty healthcare services in the capital. The deal is expected to triple the group’s bed capacity in Riyadh—from 185 beds currently to a combined 535 beds across two hospitals.

Upon completion, Fakeeh Care will fully own the target company, which will become its second hospital in Riyadh, significantly expanding its footprint in the city.

The transaction is expected to diversify the group’s payer and patient mix in Riyadh by adding cash-paying segments and insurance categories (Network 6/Class B), complementing its current positioning in higher-tier insurance segments. Over the medium term, integration between the two facilities is expected to drive operational efficiencies, cost savings, and enhanced revenue growth opportunities.

The deal is expected to increase the group’s consolidated debt levels due to acquisition financing and assumption of the target’s net debt.

Fakeeh Care will announce completion and any material updates in due course.

The company emphasized that signing the agreement does not guarantee completion, as it remains subject to the agreed conditions.

PricewaterhouseCoopers has been appointed as the financial advisor, while White & Case is the legal advisor for the transaction.

In October 2025, Fakeeh Care's board approved the initiation of negotiations with the shareholders of Dr. Mohammed Alfagih Co. to acquire a majority stake. In November, the company signed a non-binding offer to acquire at least 75% of the target company, according to Argaam data.