RIYADH: Saudi food giant Almarai acquired the UAE and Bahrain operations of Bakemart in a deal worth SR95.5 million ($25.5 million).
Almarai signed an agreement with the shareholders of Bakemart UAE and Bakemart Bahrain on March 15 to acquire 100 percent of their shares, the company said in a filing with the Saudi Stock Exchange (Tadawul) on Tuesday.
The deal was fully financed from Almarai’s operating cash flow, and the financial impact will be reflected in its next quarterly results, according to the Tadawul filing.
The acquisition will further expand Almarai’s bakery product offering and enhance its contribution to the Kingdom’s food security in line with Saudi Vision 2030.
Bakemart makes breads and pastries for the regional food service and retail sector. It was originally founded in 2003 and has two production factories in the UAE and a workforce of 800, according to its website.
Almarai has also announced the appointment of its new CEO Abdullah Nasser Al Bader. Prior to this appointment Al Bader was the executive vice president for Almarai’s bakery line since 2015.
The company in January also announced its annual consolidated financial results for the year ended December 31, 2020. Revenue for the fourth quarter 2020 amounted to SR 3.819 billion, a quarter-on-quarter increase of 3.1 percent. Operating profit for the fourth quarter amounted to SR500.2 million, a quarter-on-quarter increase of 0.4 percent.