Saudi food and beverage giant Almarai has announced a deal to buy a production facility in the UAE to expand its range of products in the region.
The company said in a filing to the Saudi Stock Exchange that it has signed an asset purchase agreement with Binghatti Beverages Manufacturing (BBM) for the purchase and acquisition of the facility for AED215 million ($58.5 million).
“This acquisition will enhance Almarai’s ability to serve its customers by expanding the range of beverage products in the region,” the company said in the filing.
It added that the transaction is fully financed from Almarai’s operating cash flows.
The acquisition remains subject to obtaining certain regulatory approvals, it also said.
Recent research by Awalan showed that Almarai was the biggest listed spender in the Saudi food sector last year with a capex of SR944 million.
Last year, the BrandZ Top 30 ranking released by WPP and Kantar also named Almarai as one of the region’s 10 biggest brands with a value of $2.8 billion.
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