RIYADH: Almarai Company, a prominent Saudi dairy producer, has recently made a significant strategic move by agreeing to acquire Jordan’s Hammoudeh Food Industries for 263 million Saudi riyals (approximately $70 million).
The acquisition, conducted through Almarai’s subsidiary, Teeba Investment for Developed Food Processing Company, marks a substantial enhancement of Almarai’s presence in the Jordanian market.
The decision to acquire Hammoudeh, a well-established dairy and cheese manufacturer with a 50-year history, underscores Almarai’s commitment to expanding its operations in key geographic areas.
As the company aims to sustain its growth trajectory, this acquisition is expected to bolster its operational capabilities and product offerings in Jordan. By integrating Hammoudeh’s established operations, Almarai is well-positioned to leverage economies of scale, thereby driving sales growth and enhancing profitability within the region.
Solid financial health
The financial backing for this transaction will come from Almarai’s internal cash flows, reflecting the company’s solid financial health and strategic focus on sustainable growth. However, the completion of the deal is contingent upon satisfying specific contractual conditions and obtaining necessary regulatory approvals.
Furthermore, Almarai’s recent financial performance reinforces the viability of this acquisition. For the third quarter of 2024, the company reported a net profit of SAR 570.45 million, an increase from SAR 486.26 million in the previous year.
Over the first nine months of 2024, net profit reached SAR1.88 billion, up from SAR1.67 billion, driven by higher revenues, effective cost control measures, a favorable product mix, and stabilised commodity costs.
