Saudi’s Almarai completes acquisition of International Dairy and Juice for $68m

A subsidiary of of Saudi dairy company Almarai, has completed the purchase of International Dairy and Juice Limited (IDJ), a former joint venture with PepsiCo in Egypt and Jordan.

Almarai Company (“Almarai”) announces the completion of Almarai Investment Holding W.L.L.’s acquisition of shares to achieve 100% ownership of International Dairy and Juice Limited (“IDJ”), a former jhttps://t.co/r51F9GeP0J

— Tadawul News (@TadawulFeed) February 19, 2023

Almarai Investment Holding has purchased PepsiCo’s 48 per cent ownership in IDJ to increase Almarai’s shareholding from 52 per cent to 100 per cent, for a total consideration of SR255m ($68m), the company said, in a filing to the Tadawul Stock Exchange on Sunday.

IDJ was a joint venture between Almarai and PepsiCo, with its main activities consisting of food and beverage manufacturing & distribution in Egypt and Jordan, as well as exporting to countries worldwide.

“The full ownership of IDJ will allow Almarai to further expand strategically in the wider region,” the company said.

The purchase amount was funded from Almarai’s internal cash flows, it added.

The company’s net profit after zakat and tax for the year ending December 31, 2022, stood at SAR1.759bn, rising 12.6 per cent from SAR1.563bn recorded during 2021.

“Net profit growth was in line with operating profit growths higher funding cost, driven by SAIBOR interest rates, were offset by a one-off gain from Zakat and tax, adjustment, amounting to SAR32m,” the company said in a statement last month.

Revenues stood at SAR18.7bn for 2022, surging 18.1 per cent from SAR15.84bn.

In 2021, Almarai completed the acquisition of a 100 per cent shares in Bakemart UAE and Bahrain, to expand its bakery product offering and bolster its contribution to the kingdom’s food security.

Read: Saudi Arabia’s Almarai acquires Bakemart in UAE, Bahrain