A subsidiary of Saudi food giant Savola Group has announced the acquisition of a UAE-based Bayara Holding Limited in a deal worth $260 million.
Bayara is a packaged foods company offering a wide range of nuts, spices, dried fruits, pulses and snacks with a distribution network spanning across Saudi Arabia, the UAE and more than 30 other countries across the Middle East and Africa.
Savola Foods said it has acquired 100 percent of Bayara in a cash deal, adding that the acquisition is “pivotal” to its growth strategy focused on expansion into high growth, value-added food categories.
It added that Bayara’s business is driven by the prevailing trend towards achieving a healthy lifestyle and a growing younger population.
Bayara recorded net sales of approximately SR420 million for the 12-month period ending in March, a statement said.
Waleed Fatani, Savola Group CEO, said: “The acquisition of Bayara represents a strategic addition to Savola Group, and a demonstration of our commitment to continue growing Savola’s portfolio with future focused businesses. It reinforces our overarching focus on growth and delivering long-term value creation for our shareholders.”
Sameh Hassan, CEO of Savola Foods, added: “We are seeking to introduce and drive this new business under Savola Foods through regional expansion while strengthening and consolidating our base in the UAE.”
“We are excited that Bayara will be joining the Savola Foods team. Bayara has achieved remarkable success over the past thirty years, and we look forward to building on this strong foundation to continue this momentum through this next stage,” said Jean Marc Lourau, CEO of Bayara.
Established in 1979, Savola Group operates the largest grocery store chain in Saudi Arabia, and produces food products across categories, including edible oil, sugar, pasta, bakery products and frozen foods.