United Company of Pharmacists to sell off 30% of stake to KSA healthcare group

Cairo – November 9, 2023: KSA’s Tamer Healthcare group may be acquiring 30 percent of Egypt’s United Company of Pharmacists (UCP) before the end of 2023 with a potential sale value of $35 million, according to sources speaking to regional media.

American conglomerate Cencora, formerly AmerisourceBergen, is reportedly offering 30 percent of its total 50 percent of the UCP to Tamer Healthcare, with the remaining stake staying in the family of founder, Hossam Omar. The sources explained that the two companies have settled on the size and value of the sale.

Considered the country’s largest pharmaceutical distributor, the UCP’s business model is centered on obtaining medicine from factories and distributing it to pharmacies and chains in exchange for a profit rate.

According to the UCP’s website, it holds a third of Egypt’s pharmaceutical distribution market, supplying 38.5 thousand pharmacies and 2 thousand hospitals. It stated that it distributes to 69 warehouses and around 20 thousand pharmacies around the world.

UCP’s general manager Mohamed Galal told a local news outlet in September that several Arab investors and funds shared their interest in a potential acquisition with the company, but noted that the company had not received any official offers.

Separate media reports in August reported that the UCP was looking into alternatives for financial restructuring, which included selling shares to a strategic investor.