Al Majed for Oud values Al Safa Pharmaceuticals at SAR 392 million

Published: 2026-06-15T12:53:03.000Z

Saudi Arabia's Al Majed for Oud has put a number on a deal it has been quietly chasing for months. The Tadawul listed fragrance specialist has reached a preliminary, non binding agreement valuing Al Safa Pharmaceuticals and Medical Supplies at SAR 392 million, subject to adjustment for net debt and further due diligence.

Saudi Arabia's Al Majed for Oud has just put a number on a deal it has been quietly chasing for months, and the figure tells you a fair bit about how seriously the fragrance specialist wants to diversify. The Tadawul listed company has reached a preliminary, non binding agreement that values Al Safa Pharmaceuticals and Medical Supplies at SAR 392 million, a meaningful step up from the vague memorandum of understanding it signed at the end of December. The earlier filing had been candid that no price could yet be calculated. Six months of due diligence later, the parties have settled on a working valuation that the next phase of negotiations will hinge on. The mechanics buried in the disclosure are where this gets interesting. The SAR 392 million figure is the headline equity valuation, but it will be adjusted for an estimated net debt of SAR 224 million sitting on Al Safa's books as of the end of 2025, along with any other agreed line items that emerge during further work. In plain terms, the buyer's actual cash and stock outlay will be the SAR 392 million minus that debt and any tweaks, which gives both sides room to move once detailed due diligence is complete. It is the kind of structure that signals seasoned advisers in the room rather than a casual handshake. The payment plan is just as telling. Al Majed for Oud intends to settle the deal through a mix of cash and newly issued shares in itself, with the share component priced at SAR 151.01 each based on the 90 day average trading price ahead of the non binding offer. The split between cash and stock has not been fixed, which leaves room for negotiation but also signals that the company wants to bring the Al Safa sellers in as future shareholders, aligning their interests with the combined business rather than simply paying them out and waving goodbye. That is a common feature in deals where the buyer wants the target's founders to stay engaged through integration. The agreement is still not final and remains subject to legal, financial and tax due diligence. The strategic logic is straightforward and a little unexpected. Al Majed for Oud is a fragrance and oud retailer that listed in late 2024 and has been delivering strong recent earnings, with annual net income climbing 38.6 percent to SAR 217.6 million in 2025. Buying a pharmaceuticals and medical supplies group is a deliberate leap beyond perfume into the healthcare distribution space, a sector with very different margins, regulatory demands and growth dynamics. To navigate that, the company has brought in GIB Capital as financial adviser and Khashim Lawyers and Consultants on the legal side, the kind of lineup that suggests a transaction the board wants done properly. The regional read fits a wider Saudi pattern. Across the kingdom and the wider Gulf, family controlled consumer companies are increasingly using listings and follow on deals to diversify into sectors aligned with Vision 2030, including healthcare and pharmaceuticals, where local demand is rising fast. A listed perfume retailer reaching into medical supplies is an unusual but telling example of how Saudi corporates are using their newfound public market currency to reshape themselves into broader, more resilient platforms.