BinDawood Holding CEO sees positive impact from Jumeirah acquisition

Ahmad BinDawood, CEO of BinDawood Holding Co.

Ahmad BinDawood, CEO of BinDawood Holding Co., expects the acquisition of Jumeirah Trading Co. to have a positive financial impact on the company and its shareholders, following the closure of the acquisition and the finalization of the regulatory and legal procedures.

In an interview with Argaam, the CEO explained that Jumeirah recorded significant net profits during and after the COVID-19 pandemic. It also achieved cost synergies by merging some units and rationalizing expenses. The BinDawood Group will ramp up investments in logistics services to keep pace with the company's business growth, in addition to attracting more customers by diversifying its offerings.

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He affirmed that the acquisition aligns with BinDawood Holding's strategic vision by expanding its distribution operations and reducing supply chain risks, which will improve profit margins through leveraging strengths and achieving vertical integration with the company's current operations. The CEO clarified that the acquisition will be financed from the company's internal resources.

BinDawood explained that the impact of the acquisition will come from entering the market with greater momentum and expanding wholesale food distribution operations, allowing BinDawood Holding to have greater control over supply chains and excel in providing products to customers.

He revealed that the company aims to attract a number of local and international agencies, given its capability to market these products through its numerous branches across Saudi Arabia. This, in turn, ensures a diverse range of products for customers. He also confirmed the company's commitment to the regulations of the General Authority for Competition.

According to data available on Argaam, BinDawood Holding’s board of directors approved in May, the 100% acquisition of Jumeirah Trading at SAR 186.5 million.

The company obtained, on July 7, the approval of the General Authority for Competition (GAC) on the buyout of Jumeirah Trading, according to a statement to Tadawul. The deal is expected to be finalized in H2 2024.

Jumeirah Trading is a related party, as board members Abdulkhaleq bin Dawood has a direct interest in it, while Abdulrazzaq bin Dawood, Khalid bin Dawood and Tarek bin Dawood have indirect interest.