EFG Hermes Concludes Advisory on MENA-Based Discount Retailer Kazyon’s Acquisition of a 50% Stake in Dukan in Saudi Arabia

Karim Galal, Managing Director at EFG Hermes’ Investment Banking Division

EFG Hermes, EFG Holding’s Investment Bank, the leading investment bank in Frontier and Emerging Markets (FEM), announced today that its Investment Banking division successfully concluded advisory on a merger and acquisition (M&A) deal for Kazyon, a prominent MENA-based discount retailer. In this transaction, Kazyon successfully acquired a 50% stake in Dukan, the sole discount retailer in Saudi Arabia, signaling its strategic entry into the Saudi market. Al Dabbagh Group, the existing shareholder of Dukan, will retain the remaining 50% stake in the company. EFG Hermes advised Kazyon on the acquisition of Dukan with White and Case acting as legal counsel.

Commenting on the transaction, Karim Galal, Managing Director at EFG Hermes’ Investment Banking Division said, “We are proud to have played a pivotal role in facilitating Kazyon’s landmark acquisition of Dukan. This transaction aligns seamlessly with our strategic objective of expanding our presence in Saudi Arabia and highlighting the Kingdom’s immense investment potential across diverse sectors. Marking the second collaboration between EFG Hermes and Kazyon – with the first being EFG Hermes’ advisory role in Kazyon's USD 76.5 million capital raise/private placement in 2014 – this successful track-record is a testament to the longstanding relationship between the two entities. The deal also underscores our trusted capability to lead on transformative transactions, solidifying our position as the premier advisory house of choice in the region.”

Dukan is a fast-growing convenience retail grocery company in Saudi Arabia founded in 2013 by Al-Dabbagh Group. Dukan has a chain of over 100 neighborhood stores across Jeddah, Makkah and Al Taif with plans to expand to Riyadh. It offers a full range of discounted basic groceries and a differentiated assortment of private label and exclusive brand products.

Established in 2014, Kazyon has emerged as a distinguished player in the regional discount retail sector, boasting a robust presence with over 1,000 stores in Egypt and Morocco by the close of 2023. Renowned for offering high-value products at competitive rates, Kazyon has successfully catered to millions of customers within its extensive network. This strategic acquisition marks a significant milestone in Kazyon’s ongoing regional growth endeavors, which included the successful introduction of Kazyon in Morocco in 2023. The expansion into Saudi Arabia represents the next pivotal phase in Kazyon's ambitious growth trajectory.

EFG Hermes continues to sustain its leading position in the market through its unrivaled advisory track-record on the region’s most prominent, high-profile transactions. The deal is one of the major M&As EFG Hermes has advised on which also includes Jadwa’s sale of a 100% stake in Meswak, worth USD 500 million. It also advised Abu Auf on the sale of a 60% stake to Agthia, worth USD 115 million, and the sale of an 85.5% stake in SODIC to Aldar at USD 388 million, and PIF’s USD 150 million acquisition of a 33.4% stake in B.TECH. EFG Hermes also advised on seven IPOs in the region in the past year, including a number of landmark offerings in Saudi Arabia. Most recently, EFG Hermes advised on the USD 1.2 billion IPO of ADES Holding Company on the Saudi Exchange, the USD 378 million IPO of Riyadh Cables on the Saudi Exchange, and Lumi Rental Company’s USD 290 million IPO on the Saudi Exchange.