Gulf Capital Acquires 70% of Medica Holding
Gulf Capital, one of the largest and most active alternative asset managers in the Middle East, announced today that it has acquired a 70% stake in Medica Holding, the leading service provider of aesthetics, cosmetics and dermatology equipment and products across the Middle East.
Gulf Capital is actively targeting investments in the fast-growing beauty and healthcare sectors, which are expected to register double digit growth rates across emerging markets. In particular, the US$10 billion health aesthetics market is projected to grow at 10% annually over the next five years, driven by rising GDP per capita, the growing global adoption of minimally invasive and non-invasive cosmetics procedures, increased public awareness and acceptance from men and women, as well as technological advancements.
Founded in 1999, Medica has evolved into a prominent end-to-end service provider in the aesthetics sector with a portfolio of over 20 international brands across 12 countries. Its services range from consulting and education to logistics and marketing across four aesthetics verticals: equipment, injectables, cosmetics and para-pharmaceuticals. Following its partnership with Gulf Capital, Medica aims to enhance its footprint in MENA region and expand across Africa and Asia via organic growth and acquisitions and to broaden its service offerings into new aesthetics verticals.
Dr Karim El Solh, Chief Executive Officer of Gulf Capital, said: "We are delighted to partner with Medica, the leading aesthetics and cosmetics service provider in the Middle East and are excited to fund its ambitious growth and future expansion plans across emerging markets. Medica's track-record is one of continuous innovation and growth, and it has demonstrated its ability to pioneer aesthetics and non-invasive procedures in the Middle East for over 20 years. This investment in the dominant market leader gives Gulf Capital a strong exposure to the fast growing aesthetics and cosmetics sectors and allows us to capitalise on the growing consumer and healthcare trends in the region."
Elias Chabtini, CEO and co-founder of Medica Holding, said: "We are excited to embark on this new chapter in Medica's journey alongside Gulf Capital, a firm with a wealth of experience and operational expertise that will support our expansion and growth plans. The Medical Aesthetics sector is among the fastest growing sectors globally and Medica is uniquely positioned to play a key role regionally and across emerging markets. Our partnership with Gulf Capital is a major step towards reaching our goal of becoming the leading player in emerging markets as we expand across new geographies and complement our portfolio offerings with leading technologies across all aesthetic verticals."
Abdullah Shahin, Managing Director at Gulf Capital, added: "Medica has been playing a key role in transforming the non-invasive Medical Aesthetics sector across the region. This is an area that has been growing at double digit rates globally, with the GCC aesthetics market still on an earlier growth path with a projected 15% annual growth rate over the next five years. We are impressed by the management's data driven approach and its ability to penetrate geographies and verticals, and we look forward to working closely with the team on this new phase of growth."
Dr. El Solh concluded: "Gulf Capital has been particularly active over the last 18 months, with the successful closure of eight new and follow-on investments at the portfolio companies' level. The Firm has been equally productive on the exit side, having secured and closed five landmark exits during the same period. This latest investment in Medica cements our established strategy of acquiring majority stakes in market leaders in fast growing sectors. We are looking forward to a productive rest of the year as we maintain our investment pace and continue to work on a number of strategic new investments and exits in the near future."
Medica is a UAE based company with regional offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Bahrain, Oman and Beirut as well as partnerships and joint ventures across 12 countries. The company has over 1000 unique products across 20 international Tier 1 brands and many suppliers in its portfolio. It has over 200 employees across its offices and warehouses servicing thousands of clients across the region. Medica's services include Education, Training, Maintenance, logistics, Sales and Marketing but mostly, consultancy across four business verticals: equipment, medical injectable, cosmeceuticals, and para-pharmaceuticals.
Gulf Capital is one of the leading alternative asset management firms in the Middle East, investing across several asset classes including Private Equity, Private Debt and Real Estate and currently manages over AED 11 billion (US$3 billion) of assets across seven funds and investment vehicles. Gulf Capital's mission is to grow capital and build value with world-class expertise and best practices to generate sustainable superior performance for all stakeholders.
Gulf Capital was advised by Freshfields Bruckhaus Deringer and PwC. The selling shareholders of Medica were advised by Emirates Investment Bank PJSC and BonelliErede.
