21/06/2016 01:59 AST
Mezzan Holding, one of the largest food, beverage, FMCG and pharma manufacturing and distribution companies in the Gulf, announced on Monday that it is in talks with Saudi Arabia's Al Faisaliah Group, a leading diversified business group, for the establishment of a joint venture in Saudi's food manufacturing and distribution sector.
Mezzan Holding Vice-Chairman, Mohammed Al Wazzan, said "Saudi Arabia represents a key growth market for our company, and Al Faisaliah Group is a strong, reputable company that we look forward to partner with to grow our Saudi business."
Mezzan Holding is a Kuwait Stock Exchange-listed company that operates in food, beverage, FMCG, and pharmaceutical sectors in seven countries through 29 subsidiaries and 7,500 employees. The company generates approximately 75% of its revenues through retail-based activities.
Under the terms of the JV agreement, Mezzan Holding will acquire a 70% stake through a capital increase in a food and beverage manufacturing and distribution entity, Al Safi Food Company, currently owned by Al Faisaliah, which will retain the remaining 30% stake. The transaction is expected to close in six to eight weeks subject to satisfying certain precedent conditions and obtaining regulatory approvals. Mezzan Holding's investment in the JV is expected to be between KD7 million and KD7.7 million.
The joint venture will enable Mezzan Holding to manufacture, market and distribute food products in the Kingdom of Saudi Arabia, and award it exclusive rights to continue to manufacture, market and distribute Al Faisaliah Group's bakery and snacks products line, as well as the exclusive rights to import, manufacture, sell and distribute all Mezzan Holding brands. The company will be headquartered in Riyadh, the capital of the Kingdom of Saudi Arabia.
Al Faisaliah Group is a privately-held, multi-business group headquartered in Saudi Arabia and predominantly serving the Middle East with activities in over twenty countries. Founded in 1971, the Group holds leading positions in agriculture & food, healthcare, food services, pharmaceuticals, and electronics & systems. The Group is recognized by virtue of its strongly-held values, its professional management and its long-tenure strategic partnerships and joint ventures with leading global firms including Sony, Danone, Philips, and Accenture.
Mezzan Holding was advised by Mohammed & Khlood Aldukheil Co. (MKD) and Abdulaziz H. Al Fahad & Partners. Al Faisaliah Group was advised by Abdulaziz I. Al-Ajlan & Partners in association with Baker & McKenzie Limited.
Saudi Gazette
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