GFH Capital buys Saudi bread and sweets maker

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GFH Capital, a subsidiary of GFH Financial Group, announced today that it has agreed to acquire an unidentified market leading bread and sweets producer in Saudi Arabia  for a transaction value of $50m.

GFH said the company was established in 1984 and is a leading industrial scale producer of bread and sweets. It employs 300 people and supplies more than 3,000 clients across the kingdom. The company reported revenues increasing at a compound annual growth rate of 11 per cent between 2010 and 2014. GFH said it is expected to maintain this level of growth over the investment period.

“We’re pleased to announce this new acquisition in Saudi Arabia’s consumer goods market, one of the fastest growing and best-performing sectors in the kingdom,” GFH managing director Hisham Alrayes said. “The acquisition is well in line with our objectives and ambitions to enhance our position and investment portfolio in the Saudi market where we see significant opportunity particularly in sectors such as this where growth is driven by strong consumer demand.”

Food consumption in Saudi Arabia is forecast to grow at a compound annual rate of 7.5 per cent between 2014 and 2018.

GFH’s strategy is focused on investing in cash yielding opportunities in defensive sectors that have sound growth potential. This includes retail and consumer driven businesses, education, healthcare and real estate among others in the region and other international markets.