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
Danone has appointed Carla Hilhorst to the newly created position of senior vice president of research and innovation categories and zones, as the company looks to make science the heart of its business. Hilhorst, who brings over 30 years of experience in research and innovation, will report directly to Isabelle Esser, Danone’s chief research, innovation, quality and food safety officer.
The move, part of Pernod Ricard’s strategy to enhance its premiumisation efforts, will allow the company to focus more resources on its portfolio of premium international spirits and champagne brands that drive the growth of its business. This decision aligns with the company’s commitment to delivering sustainable value for shareholders, employees, clients and partners.
Schai – who is the current CEO of Swiss chocolate company Lindt & Sprüngli’s Australian operation – has previously worked with Aryzta from 2015-2018, where he served in roles including managing director for Asia Pacific and global strategic business lead (McDonald’s). The fast-food giant McDonald’s is one of Aryzta’s significant clients.
