GFH Financial Group Acquires Leading Food Services and Logistics Business in Saudi Arabia
Manama – xx October 2023: GFH Financial Group (“GFH”) has announced the signing of an agreement to acquire a prominent food services and logistics business in the Kingdom of Saudi Arabia (“KSA”). The acquisition, with an enterprise value of approximately SAR 500 million, was disclosed at the 7th edition of the Future Investment Initiative in Riyadh.
The acquired company has demonstrated robust financial performance across various business cycles and operates state-of-the-art integrated warehousing and supply chain operations. With a diverse portfolio of premium products and a customer base exceeding 1000 blue-chip clients, including prominent HORECA players and retail brands in the Kingdom, the company also maintains strong relationships with around 200 international aggregators and producers.
Mr. Razi Al Merbati, CEO of GFH Capital S.A., highlighted the strategic significance of the acquisition, stating, “This transaction aligns with GFH’s strategy to invest in priority sectors outlined in the Saudi Vision 2030. By expanding our presence in complementary sectors that contribute to the local economy and benefit from the country’s economic growth, we aim to enhance our portfolio with unique, income-yielding assets in defensive sectors like consumer and logistics.”
Mr. Hammad Younas, Chief Investment Officer – Private Equity at GFH, expressed optimism about the acquisition, emphasizing the company’s leading position in the rapidly growing Saudi consumer and logistics market. He stated, “With the transformative economic and social changes underway in Saudi Arabia, we see significant opportunities for the company’s expansion. We are committed to supporting its growth through organic and inorganic strategies, including geographic expansion, vertical integration, and operational enhancements.”
Mr. Shafqat Khan, CEO of the acquired company, outlined the company’s vision for future growth, emphasizing collaboration with GFH to further strengthen its market position. He stated, “With GFH as our partner, we aim to invite foreign suppliers to establish facilities in Saudi Arabia, enhancing our market presence and contributing to the country’s economic development. Through innovative offerings and strategic expansion of our logistical infrastructure, we are committed to delivering exceptional value to our customers.”
The acquisition comes at a time when Saudi Arabia is undergoing significant economic transformation, with ambitious targets set under the Saudi National Industrial Development & Logistics Program (NIDLP). The sector is expected to benefit from increased investments in entertainment and tourism, driving growth in leisure spending and creating new opportunities for businesses operating in the consumer and logistics industries.
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