Olayan buys majority stake in beverage maker Gulf Union Foods

Olayan Financing Company (OFC), the Middle East arm of The Olayan Group, has bought a 51% stake in beverage maker and fruit juices specialist Gulf Union Foods Company (GUFC).

Founded in 1999, GUFC has 12 production lines and 1,200 employees, and is a leading company in the production and marketing of juices and beverages in Saudi Arabia and the GCC. It currently has nine brands, including Original and Captain.

The transaction sees private equity firm Jadwa Investment divest its entire 30% stake in GUFC to Olayan, which it acquired in 2009.

OFC Consumer Products Division co-president Jean-Marc Deplon said: "OFC has always been a strong believer in Saudi beverage and consumer companies, as we have invested in multiple joint ventures with various local and multinational companies over the years."

He added: "We are looking forward to working with the founder, Dr. Sulaiman Al Rashoudi, and his team to take the company to even greater success.

"Together, we are confident that we can expand our reach to new markets and develop synergies that will enable GUFC to achieve its full potential, today and in the future."

GUFC founder and chairman Dr. Sulaiman Al Rashoudi said: "The Jadwa team provided world-class advice for our various strategic and business initiatives and enabled us to pursue significant growth opportunities.

"At the same time, I am delighted to welcome OFC as our majority shareholder, and I look forward to working with them to continue building on GUFC’s success."