MEFIC Capital, in its capacity as fund manager of MEFIC Private Equity Opportunities Fund 3 (the “Fund”), has successfully completed an investment in Meras Arabia Medical Holding Company (the “Company” or “MERAS”), a leading chain of cosmetic dermatology and dental clinics in Riyadh.
MERAS operates 8 centers in Riyadh, and was founded by Dr Abdulaziz Al Bakr who progressively built this chain of clinics since 2012, mostly through the acquisition of existing standalone centers, fully refurbishing and upgrading them and then operating them based on MERAS standards. Approximately, two thirds of the Company’s revenue is generated from cosmetic dermatology, followed by 24% dentistry and 12% other medical services. The centers focus on providing quality services at competitive pricing.
The Fund has acquired a 44% stake in the Company, mostly through a capital injection, with the founders retaining control and management of the business.
Dr. Abdulaziz Al Bakr has stated, “Our partnership with MEFIC Capital marks a key milestone in the success story of MERAS. We are confident that with the support of MEFIC Capital, along with the prominent Healthcare players who have invested in the Fund, we are well positioned to take the Company through its next stage of development and accelerate its expansion in the cosmetic dermatology sector”
Ibrahim Al Hedaithy, CEO of MEFIC Capital, has commented, “MERAS is a success story demonstrating the Saudi talent in creating local champions delivering quality services at competitive pricing. The Company is well positioned in this growing sector and we are committed to support our partners to accelerate the development of the Company throughout the Kingdom. We are proud of the strong demand received for this Fund from both strategic and financial investors, which resulted in around 200% coverage of the Fund”
Joseph Hakme, Head of Private Equity at MEFIC Capital, added, “Our investment in MERAS marks our first healthcare investment in KSA, consistent with our strategy of investing in successful Saudi SMEs enjoying strong track record and solid growth potential. We are proud to partner in this Fund with prominent strategic healthcare players who will help accelerating the development of MERAS. With the closing of our fourth Private Equity fund, we look forward to continue expanding MEFIC’s Private Equity footprint in the Kingdom”.
EKP Law Firm acted as legal advisor and Deloitte as financial due diligence advisor to MEFIC Capital. AlDhabaan & Partners in association with Eversheds Sutherland LLP acted as legal advisor to the sellers.
MEFIC Capital is regulated by the Capital Market Authority of the Kingdom of Saudi Arabia (CMA No. 06029-37).