Kuwait’s billionaire Al Kharafi family is looking
to sell Americana, one of the Middle East’s largest food companies, and has
hired bankers to explore a deal, four sources familiar with the matter told
Reuters.
There is no formal process underway, the sources
said, but the family is working with investment bank Rothschild to approach
potential buyers including private equity groups and sovereign wealth funds in
the region to explore their interest in the $3.6bn group.
According to Thomson Reuters data, the Kharafi
family holds 66.8 percent of Kuwait Food Company, which sells goods under the
brand name Americana, through its private investment company MAK (Mohammed
Abdulmohsin Al Kharafi & Sons).
Rothschild declined to comment. Americana and MAK
were not immediately available for comment.
Founded in 1964 in Kuwait, Americana is a publicly
traded group of companies based in the Middle East and North Africa, with
interests in restaurants and packaged food.
It trades on the Kuwait stock exchange and its
$3.63 billion market capitalisation makes it the biggest company on the Thomson
Reuters MENA Cyclical Consumer Goods and Services Index. The group had sales of
$3.1bn dollars in 2013 and profits of $179m, according to its
website.
The company is a franchise operator of restaurants
including KFC and Pizza Hut, owned by Yum Brands, and Red Lobster and Olive
Garden, owned by Darden Restaurants. Americana also manufactures California
Garden beans and Farm Frites frozen vegetables.
The Middle East is seen as an attractive region for
food and drink companies, thanks to a growing and youthful population and a
drive to reduce the economic dependence on oil and gas.
In 2009, Americana sold its stake in a joint
venture called Cairo Food Industries to its partner, H.J. Heinz, which is now
owned by Brazilian private equity firm 3G.
PepsiCo has a joint venture with Saudi Arabian
dairy company Almarai, while Coca-Cola bought half of the Saudi Arabian
beverage business owned by Aujan Industries in 2012, pledging to invest $5
billion in the region over the next decade.
The sources said it was not clear whether the
business might be sold in part or as a whole.
The Kharafi family, one of the most influential in
the Gulf Arab region, have holdings across various sectors including
construction, financials and telecoms through MAK.
Follow us on
