Gulf Capital acquires Saudi F&B distributor Multibrands

Alternative investment firm Gulf Capital announced on Tuesday it had acquired Saudi Arabian food and beverage distributor Multibrands Trading Co.

The company, founded by Kuwaiti entrepreneur Fozan Al-Fozan in 2006, is one of the kingdom’s largest F&B distributors and has an annual turnover of more than $100m.

It has agreements with 50 brands across five product categories, including Sweet’N Low, McCain and Ocean Spray, and distributes them through retail chains, hotels, cafes, bakeries and restaurants from offices in Riyadh, Jeddah and Dammam.

“This latest transaction, the largest of its kind in its sector, continues Gulf Capital’s strategy of investing in defensive and fast growing sectors across the Gulf,” said chief executive Dr Karim El Solh.

Gulf Capital said the F&B market was one of the largest and fastest growing outside oil in Saudi Arabia and expected to grow from $56bn to $83bn by 2020.

“The F&B market in the kingdom remains under-penetrated, with significant room for growth in the grocery retail outlets and food service retail outlets as well as in the hotels, restaurants and cafés segments,” said Gulf Capital senior managing director of private equity Richard Dallas.

“As a market leader in the F&B sector, Multibrands gives us a unique exposure to this growth potential and allows us to capitalise on the rising consumption trends in Saudi Arabia.”

Gulf Capital has a portfolio of investments in F&B, healthcare, education, power, water and fast moving consumer goods.

It has raised $1bn over the last two years across its private equity and debt funds and manages Dhs 13bn ($3.53bn) of assets across 10 funds and investment vehicles.