Global takes 60% stake in Saudi retailer

The private equity arm of Kuwait’s Global Investment House on Thursday announced the completion of the acquisition of a 60 percent stake in Al Sawani Food and Industrial Supply Company.

Financial details of the transaction were not disclosed. The Saudi based retailer has over 550 outlets across the region through which it sells 36 international brands including Guess, Benetton and Esprit.

“We are very bullish on retailing,” said Shailesh Dash, Senior Vice President at Global Investment House.

“Fueled by regional liquidity, and a burgeoning young population, retail in the GCC and the wider MENA region is poised for sizeable growth.”

Mohammed Abdulqader Hafiz will remain Sawani’s chief executive.

“We plan on opening an average of 2.5 stores per day in the coming fiscal year 2008/2009 and we are, as we speak, exploring several acquisition opportunities in the region to expand our presence and diversify our product offering,” Hafiz said.

The Global Buyout Fund is currently in the process of increasing the capital of the company by another $100 million to fund the company’s acquisitions of retail space in the region.

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