GFH Capital, a subsidiary of Bahrain-based GFH Financial Group, has agreed to acquire a bread and sweets producer in Saudi Arabia in a transaction worth $50 million.
The company, which was not named by GFH, employs 300 staff and supplies to over 3,000 clients across the kingdom. Some of its flagship customers include leading fast food chains and five star hotels, a statement said.
It added that the bread and sweets company reported strong, consistent growth year after year with revenues increasing at a compound annual
growth rate (CAGR) of 11 percent between 2010 and 2014.
Commenting on the agreement, Hisham Alrayes, managing director of GFH Capital, said: "We’re pleased to announce this new acquisition in Saudi Arabia’s consumer goods market, one of the fastest growing and best performing sectors in the kingdom.
"The acquisition is well in line with our objectives and ambitions to enhance our position and investment portfolio in the Saudi market where we see significant opportunity particularly in sectors such as this where growth is driven by strong consumer demand. This is a high quality manufacturer that we believe has a solid platform, track record and brand that can be further grown.”
Saudi Arabia is home to the largest population in the GCC at 29.8 million. Food consumption is forecast to grow at a CAGR of 7.5 percent between 2014 and 2018, the statement added.
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