GFH Capital buys Saudi bread producer for $50 mln

Dubai-based GFH Capital, a wholly-owned subsidiary of Bahrain’s GFH Financial Group, has acquired a bread and sweets producer in Saudi Arabia for $50 million, the company said in a statement on Tuesday.

The company, which was not named by GFH, supplies to over 3,000 clients across the kingdom through its extensive distribution network.  Its revenues rose at compound annual growth rate CAGR of 11 percent during 2010-2014, and is projected to maintain this growth level over the investment period.

The deal falls in line with GFH Capital’s strategy of investing in cash yielding opportunities in retail and consumer driven businesses.

“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,” said Hisham Alrayes,” GFH Capital’s managing director.

Saudi Arabia is home to the largest population in the GCC at 29.8 million, as well as a one of the fastest-growing populations in the region. This is seen to benefit the country’s food and beverage sector, as food consumption is set to grow at a CAGR of 7.5 percent between 2014 and 2018.