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GFH signs to acquire a leading food services and logistics company in Saudi Arabia

GFH Financial Group announces that it has signed to acquire a leading food services and logistics business in the Kingdom of Saudi Arabia which has an enterprise value of c. SAR 500 million. The announcement was made at the 7th edition of the Future Investment Initiative today in Riyadh.

The Company, which has demonstrated strong financial performance and maintained robust results through multiple business cycles, boasts cross-country state-of-the-art integrated warehousing and supply chain operations, an extensive premium product portfolio, and a diverse base of 1000+ blue-chip customers including renowned HORECA players and retail brands in the Kingdom. Furthermore, it enjoys long-standing relationships with circa 200 international aggregators and producers.

Commenting, Razi Al Merbati, CEO of GFH Capital S.A., said, “This transaction will come in line with GFH’s strategy to invest in priority sectors aligned with the Saudi Vision 2030. This includes building the Group’s presence in complementary sectors with a positive impact on the local economy that also benefit from the country’s economic growth and demographic tailwinds. With a strong pipeline of cross-sector opportunities in place, we are focused on expanding our portfolio of unique, income-yielding assets in defensive sectors, including the consumer and logistics industries, some of the fastest growing in the Kingdom today.”

Adding, Hammad Younas, Chief Investment Officer – Private Equity at GFH, said, “We are delighted to announce this upcoming strategic acquisition. Already a leading player in the fast-growing Saudi consumer and logistics market, which is the largest in the region, we see strong opportunities for the company’s further expansion resulting from sweeping economic and social transformation and the rapidly changing domestic landscape fueling all-time high consumer and investor confidence. Once acquired, we look forward to working with the exceptional management team of the Company to add value to the business and support the growth of the sector through multiple organic and inorganic growth strategies including geographic and portfolio expansion, vertical integration, enhancing of warehousing and logistical capacity, and the realization of cost efficiencies throughout the value chain.”

CEO of the Company, Shafqat Khan, said, “We have built a strong brand in the KSA market with a large and well-diversified satisfied customer base coupled with a successful track record of longstanding global relationships. With the support of GFH as our partner, we aim to invite our foreign suppliers to set up facilities in KSA, wherever possible. Through this, the company will enter into a new phase of growth and strengthen its market positioning further. This milestone for the company also dovetails well with the enhanced dynamics of the KSA market under Saudi Vision 2030. The dedication of our team, focus on quality service delivery and agility have been the anchor driving forces of our business, and through this upcoming partnership with GFH, we look forward to further augmenting innovative offerings for our customers by leveraging technology combined with an extensive international network and strategic expansion of our existing customer-oriented logistical infrastructure, adding significant value to the business.”

By 2030, the Saudi National Industrial Development & Logistics Program (NIDLP) targets adding US$453 billion in private sector investment, contributing US$320 billion to GDP and creating 1.6 million new jobs. With heavy investments in entertainment and tourism, tourist arrivals are expected to grow steadily to reach 100 million by 2030. The sector’s growth will also benefit in the near and longer term from an increase in population, disposable income across major cities, and higher purchasing power coupled with behavioral and spending shifts that are already underway across the leisure spending market, which will continue to supercharge recreation and culture growth.