Almarai’s US$70M acquisition of Hammoudeh Food Industries fails to materialise
The acquisition could not be completed due to factors beyond the company’s control.
SAUDI ARABIA – The Saudi Arabian food and beverage group Almarai has failed to finalize its planned acquisition of Jordan-based Hammoudeh Food Industries.
In a brief statement on March 17, released on the Saudi stock exchange Tadawul, Almarai announced that the acquisition could not be completed because the seller was unable to meet certain conditions required for the transaction.
Despite this setback, Almarai expressed its willingness to explore future expansion opportunities, recognizing the importance of strengthening regional operations and expanding geographically to better serve consumers in various markets.
The deal was initially announced in October, revealing that Almarai had reached an agreement to purchase Hammoudeh Food Industries, the food and beverage manufacturing arm of the Hammoudeh conglomerate, for US$70.1M at that time.
Almarai, which operates in sectors including dairy, poultry, bakery, infant nutrition, and juice, intended to carry out the transaction through its subsidiary, Teeba Investment for Developed Food Processing Company. Hammoudeh produces a wide range of products, including dairy, juices, poultry, and eggs.
In the announcement regarding the deal, Almarai described Hammoudeh Food Industries as a well-established dairy and cheese business with over 50 years of heritage in the Jordanian market.
The acquisition was expected to enhance Almarai’s foothold in Jordan and align with the company’s broader growth strategy aimed at maintaining sustainable growth in core markets and regions.
Additionally, Almarai stated that acquiring Hammoudeh Food Industries would improve its capacity to serve customers in the region, expand operations and product offerings, and leverage operational scale in Jordan to drive sales growth and profitability.
Almarai Company is a Saudi multinational food company listed on the Tadawul stock exchange. It specializes in food and beverage manufacturing and distribution, with its main offices located in Riyadh, Saudi Arabia.
Almarai commenced operations in 1977, founded by Irish brothers Alastair and Paddy McGuckian along with Prince Sultan bin Mohammed bin Saud Al Kabeer.
Hammoudeh Food is a well-established dairy and cheese enterprise that has been operating in the Jordanian market for over 50 years. According to the company’s data, its export markets over the past three years include Iraq, Yemen, the UAE, Palestine, Bahrain, and the US.
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