Mezzan Holding acquires 70% stake in Al Safi Food Company

Kuwait-based food and beverage company Mezzan Holding has acquired a 70% stake in Al Safi Food Company, a food manufacturing start-up in Saudi Arabia.

Carried out through a capital injection of SAR90.75m ($24.1m), the acquisition will provide Mezzan Holding a local platform to manufacture and distribute food and beverage products in the country.

The capital injection includes planned capital expenditures leading up to the end of next year.

Al Safi Food Company was established by Saudi Arabia’s Al Faisaliah Group in January 2014 and operated last May. The latter will continue to be part of Al Safi with its remaining 30% stake.

Mezzan Holding is operational in seven countries through 29 subsidiaries and has approximately 7,500 employees. The company generates approximately 75% of its revenues through retail-based activities.

Mezzan Holding vice-chairman Mohammed Al Wazzan said: “Saudi Arabia represents a key growth market for our company. We look forward to grow our business in the Kingdom and serve Saudi households with high-quality food products along our local partners, the Al Faisaliah Group.”

To be renamed as Mezzan Food Company, Al Safi Food Company will also have the right to manufacture, market and distribute food products in Saudi Arabia.

The company also gained exclusive rights to manufacture, market and distribute Al Faisaliah Group’s snacks and baked goods, as well as import, manufacture, sell and distribute all Mezzan Holding brands.