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Olayan Financing Company acquires majority stake in Gulf Union Foods Company.

Olayan Financing Company (OFC), Jadwa Investment and other shareholders of Gulf Union Foods Company (GUFC) announce that they have completed the sale of 51 percent stake in GUFC to OFC.

As part of the transaction, Jadwa Investment has sold the entire 30 per cent stake in GUFC that was owned by its Food and Beverage Opportunity Fund. Jadwa's Food and Beverage Opportunity Fund invested in GUFC in December 2009 and is a private Shari'ah-compliant closed-end fund established under the laws and regulations of the Capital Market Authority (CMA) in the Kingdom of Saudi Arabia.

Dr Sulaiman Salih Al Rashoudi, founding shareholder and Chairman of Gulf Union Foods Company, said: "I would like to congratulate Jadwa and OFC for successfully closing this transaction. I would also like to thank Jadwa Investment for their support, which was a key part of our successful growth. The Jadwa team provided world-class advice for our various strategic and business initiatives and enabled us to pursue significant growth opportunities. At the same time, I am delighted to welcome OFC as our majority shareholder, and I look forward to working with them to continue building on GUFC's success."

Tariq Al Sudairy, Managing Director and CEO of Jadwa Investment, said: "Since the Fund's investment in GUFC in 2009, we have been working closely with GUFC shareholders and management on several key strategic and business initiatives. During our holding period, GUFC experienced strong financial performance, registering a compound annual growth rate of 22 per cent in revenues and 14 per cent in net income. We are proud of our partnership with GUFC and wish their shareholders and management team continued success with OFC."

Jean-Marc Delpon, Olayan Financing Company's President - Consumer, commented: "OFC has always been a strong believer in Saudi beverage and consumer companies, as we have invested in joint ventures with various local and multinational companies over the years. What attracted us to GUFC was its effectiveness, efficiency, its clear business strategy and its sound management team. We are looking forward to working with the founder, Dr. Sulaiman Al Rashoudi, and his team to take the company to even greater success. Together, we are confident that we can expand our reach to new markets and develop synergies that will enable GUFC to achieve its full potential, today and in the future."

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Publication:CPI Financial
Date:Jul 13, 2014
Words:396
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