Jadwa’s Food and Beverage Opportunity Fund completes sale of Gulf Union Foods

July 23, 2014 10:31 am

Jadwa Investment (“Jadwa”), a Saudi private equity house and investment bank with headquarters in Riyadh, announces that its Food and Beverage Opportunity Fund has fully exited its 30 percent stake in Gulf Union Foods Company (“GUFC”), one of the leading beverage producers, to Olayan Financing Company. Jadwa’s Food and Beverage Opportunity Fund, a private Shari’a compliant closed-ended fund established under the laws and regulations of the Capital Market Authority (“CMA”) in the Kingdom of Saudi Arabia, invested in GUFC in December 2009.

In the four and a half years since the investment of Jadwa’s Food and Beverage Opportunity Fund in GUFC, several successful key initiatives were launched that helped transform the company into one of the largest beverage players in Saudi Arabia and the GCC. These initiatives included Jadwa assisting the company with the development of a full corporate governance framework, balance sheet optimization and the recruitment of key management personnel including chief financial officer. In addition, Jadwa assisted in the development of GUFC’s growth strategy, which saw the company expand into new geographies such as Egypt, the UAE and Jordan and introduce new products, as well as the implementation of a structured hedging strategy.

Through its Fund’s investment, Jadwa helped increase GUFC’s capital and worked closely with the management team to provide different financing options that allowed the Company to pursue its expansion projects. In this period, GUFC’s production doubled through the instalment of six additional production lines and an increase in the distribution fleet. This allowed GUFC to experience strong financial performance, registering a compound annual growth rate of 22%.

For more information, please contact:
Jadwa Investment
Khalid Al Salem
Head of Corporate Communications
Direct: +966 11 211 4833