Monday, July 14, 2014

Majority Stake Acquired in Gulf Union Foods Company

Olayan Financing Company has acquired 51% of Gulf Union Foods Company (GUFC), a leading beverage maker in Saudi Arabia and the Gulf that specializes in fruit juices. 

As part of the transaction, Jadwa Investment, a Saudi private equity house and investment bank, sold its entire 30% stake in GUFC to Olayan Financing Company (OFC).  Based in Riyadh, OFC is the Middle East arm of The Olayan Group.

“OFC has always been a strong believer in Saudi beverage and consumer companies, as we have invested in multiple joint ventures with various local and multinational companies over the years,” said Jean-Marc Deplon, co-president of OFC in charge of its Consumer Products Division.

“What attracted us to GUFC was its effectiveness, efficiency, its clear business strategy, and its sound management team,” continued Deplon.  “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.”

GUFC founder and Chairman Dr.  Sulaiman Al Rashoudi, commented: “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.”

Jadwa first invested in GUFC in 2009.  In the five years since then, GUFC registered a compound annual growth rate of 22% in revenues and 14% in net income, according to Jadwa’s CEO, Tariq Al Sudairy.

GUFC has been in operation since 1999.  It currently has nine brands, including the popular “Original” and “Captain” names. With 12 production lines and 1,200 employees, the company is among the largest players in terms of market share in Saudi Arabia and the GCC.