A unit of Saudi Arabia’s Almarai, the Center East’s largest dairy firm, accomplished the acquisition of Worldwide Dairy and Juice Restricted, its former three way partnership with PepsiCo in Egypt and Jordan.
Almarai Funding Holding purchased PepsiCo’s 48 per cent share in IDJ, growing Almarai’s stake within the firm to 100 per cent possession from 52 per cent beforehand, in a deal value 255 million Saudi riyals ($68 million), it mentioned in a submitting to the Tadawul inventory trade on Sunday.
“The total possession of IDJ will enable Almarai to additional broaden strategically within the wider area,” the corporate mentioned.
The acquisition is funded from Almarai’s inner money flows, the corporate mentioned.
IDJ was a three way partnership between Almarai and PepsiCo earlier than the deal. It specialises in meals and beverage manufacturing and distribution in Egypt and Jordan. The corporate additionally exports its merchandise to different markets.
Final month, Almarai reported a 24 per cent rise in fourth-quarter internet revenue, boosted by larger gross sales in its poultry and bakery companies.
Consolidated revenue attributable to shareholders for the three-month interval ending December 31 climbed to 355.8 million Saudi riyals from the identical interval in 2021.
Dairy and juice gross sales jumped 5.8 per cent, however earnings from the enterprise was offset by “price inflation, primarily in dairy and feed commodities”, it mentioned.
“The important thing threat stays surging price inflation for dairy and feed commodities. We proceed to see elements of world provide chain remaining beneath stress, though some areas at the moment are displaying indicators of stability,” the corporate mentioned.
The Center East and North Africa area’s meals and beverage corporations are more and more evaluating acquisitions to drive progress, diversify their product vary and broaden their footprint to higher cope with challenges that arose from the Covid-19 pandemic.
Almarai’s funding is consistent with Saudi Arabia’s intention of boosting its meals safety, with the assistance of the non-public sector.
Up to date: February 19, 2023, 10:27 AM