Jadwa’s fund sells Gulf Union Foods stake
Riyadh, July 22, 2014
Jadwa Investment, a Saudi Arabian private equity house and investment bank, said its Food and Beverage Opportunity Fund has sold its 30 per cent stake in Gulf Union Foods Company (GUFC), a leading beverage producers, to Olayan Financing Company.
The private sharia-compliant close ended fund established under the laws and regulations of the Capital Market Authority in Saudi Arabia invested in GUFC in December 2009.
Since its investment, several key initiatives were launched that helped transform the company into one of the largest beverage players in Saudi Arabia and the GCC.
The initiatives included Jadwa assisting the company with the development of a full corporate governance framework, balance sheet optimisation 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.
The GUFC’s production doubled through the instalment of six additional production lines and an increase in the distribution fleet and registered an annual growth rate of 22 per cent. - TradeArabia News Service