Dubai’s Floranow has announced its acquisition of Saudi floristry firm Bloomax.
Floranow is acquiring 100 per cent of Bloomax, with the transaction funded by a combination of debt and equity.
The deal expands Floranow’s existing operational footprint in KSA, giving the company a direct presence in nine KSA cities.
Floranow buys Bloomax
It increases the number of companies in the KSA market buying on Floranow’s platform, to more than 1,500 – and makes Floranow the largest importer/distributor of flowers in the country.
Bloomax’s current chairman, Noushad Gafoor, will join the executive team and remain in charge of KSA operations.
A further strategic priority for Floranow is a greater role for Saudi nationals and a specific focus on empowering women in the Kingdom.
The floristry giant has a proven successful acquisition track record in KSA and the region. The company’s strategy is to digitise the region’s traditional, inefficient floral market and the announcement complements the successful previous acquisition of KSA-based Astra Farms’ floral distribution business.
The Astra Farms deal, which completed in 2021, has subsequently yielded strong organic growth and fully digitised revenue, while giving Saudi retailers and wholesalers access to the largest and richest assortment of flowers and plants in one convenient marketplace.
The firm’s wider operational performance remains buoyant. To date, the company has processed more than 150,000 orders, has over 1,100 customers, and upwards of 100 employees, which ideally positions it for MENAT’s anticipated cut-flower market growth.
MENAT’s current market size is $1.15bn, with the Saudi market set to grow at 6 per cent CAGR.
Charif Mzayek, Founder and CEO of Floranow, said: “We are delighted to announce the acquisition of Bloomax. Our successful strategy remains digitising the traditional flower market, to enable direct, transparent, and efficient transactions between sellers and buyers across the world.
“We like the Saudi market a lot. It is the GCC’s largest, with exciting growth drivers, and one we have operated in successfully for several years now. We look forward to growing further there and, in tandem, prioritising the career paths of KSA nationals, especially women.”
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