Bahrain’s Investcorp buys stake in Saudi Arabia’s Bin Dawood Group

Bahrain’s Investcorp has purchased a minority stake Bin Dawood Group, one of Saudi Arabia’s largest supermarket groups, the investment firm said in a statement on Sunday.

The value of the deal was not revealed; however, the acquisition comes as Bin Dawood pushes forward with an expansion plan across the kingdom. The Jeddah-based firm is planning to open more than 30 hypermarkets and supermarkets over the next few years.

“Saudi Arabia is a key market for Investcorp where we are continuously looking for interesting investment opportunities,” Mohammed Al-Shroogi, Investcorp’s Co-CEO, said, adding that the country’s grocery retail market was worth $45 billion and expected to grow at a compounded annual growth rate of 11 percent over the next four years.

Bloomberg reported in September that Bin Dawood was in talks with Investcorp to sell a 20 percent stake, which would value the business at around $2 billion.

Bin Dawood manages over 40 supermarkets and hypermarkets across the kingdom under the Bindawood and Danube brands.

The deal is Investcorp’s sixth acquisition in Saudi Arabia. In July 2015, it bought a majority stake in NDT Corrosion Control Services, the country’s largest industrial testing services company.

Previously, Investcorp invested in fitness chain operator Leejam, car rental business Theeb, and industrial services provider Al Yusr Industrial Contracting Co.(AYTB).