The deal enables Mezzan to own 100% interest in the joint venture that also has distribution rights for Covidien products in the country
Medtronic operational headquarters in Fridley, Minnesota. (Credit: Group29 at English Wikipedia)
Jassim Al Wazzan Sons General Trading, a subsidiary of Mezzan Holding KSC, has purchased the remaining 49% stake in a joint venture (JV), which holds distribution rights for Medtronic and Covidien products in Kuwait.
The transaction allows Mezzan to own 100% interest in the JV, which holds full distribution rights for both brands and their product lines in the region.
The deal, which is valued at KD2.5m ($8.27m), is said to be Mezzan’s latest investment in the healthcare sector and extend the company’s value-added healthcare capabilities.
Mezzan Holding executive vice chairman Mohammad Jassim Al Wazzan said: “This transaction will strengthen our presence in the Kuwait healthcare sector, as we continue to expand our healthcare capabilities and provide more cutting-edge and crucial products to our customers.”
Mezzan stated that the outstanding balance from the existing partner’s previous commercial transactions will be deducted from the transaction amount.
Upon completion of the deal, the JV between Mezzan and its partner will be terminated and the income generating from the distribution rights will be completely used by Mezzan.
Mezzan Holding CEO, Garrett Walsh said: “The purchase of Medtronic distribution rights fits into Mezzan’s strategy and it complements our overall healthcare offering.
“This investment represents an important strategic opportunity to continue our expansion in the sector by offering world-class medical devices to hospitals, clinics, laboratories, doctors’ offices and a variety of other healthcare operations in Kuwait.”
Medtronic produces medical devices and therapies, including insulin pumps, pacemakers, and diabetes therapies.
The company offers advanced cardiac devices such as battery-powered and miniature pacemakers.
Mezzan is engaged in the manufacturing and distribution of food, beverage, FMCG, and pharmaceutical products in the Gulf region.