Savola Group, Saudi Arabia’s largest food products company, is in talks to buy sweets and confectionery maker Sanabel Al-Salam in a deal worth $300 million, sources told Reuters.
Savola, which owns supermarket chain Panda, is keen to increase the quality and variety of its sweets offering, said the sources, who declined to be named as the matter was not public.
Talks between Savola and Sanabel Al-Salam’s shareholders could still falter and there’s no certainty a deal will be reached, the sources said.
“Adding Sanabel Al-Salam to Savola’s portfolio signals the company is hoping to expand, and improve its retail portfolio, and will also help eliminate some competition with its Panda bakery unit,” said one source.
Savola and Sanabel Al-Salam were not available for immediate comment.
The confectioner has 104 branches across the kingdom and a catering unit. It is owned jointly by Dubai-based NBK Capital Partners, the private equity arm of National Bank of Kuwait (NBKK.KW), and Dr. Saleh Bin Nasser AlFarhan, who founded the company in 1995.
Saudi retailers have been hit by lower consumer spending because of low oil prices and government austerity policies.
Savola reported a 96 percent drop in first quarter profit. Second quarter declined 9.5 percent even after a one off gain of 62 million riyals from the sale of a panda store in Dubai.
Savola sold two percent of its shareholding in dairy producer Almarai 2280.SE in a deal worth 1.12 billion riyals last month. The transaction will produce 694 million riyals of profit for the company.
By Hadeel Al Sayegh, Celine Aswad
Source: Reuters
As 2024 comes to a close, the FoodBev Media team reflects on the year gone by and shares their thoughts and predictions for the industry in the year ahead. Join us as we explore what’s on the menu for 2025.
Butterfly Equity, a US private equity firm focused on the food and beverage sector, has appointed former Constellation Brands executive, Robert Hanson, as CEO of The Duckhorn Portfolio, effective 1 February. The move comes after Butterfly’s acquisition of the luxury wine company for $1.95 billion in October last year.
After the transaction closes, Simple Mills will remain an independent subsidiary of Flowers Foods, led by founder and CEO Katlin Smith and her leadership team. The company will continue operating from its locations in Chicago, Illinois and Mill Valley, California.
