First Mills expands into animal feed with US$20M acquisition of Al-Manar Feed Company

SAUDI ARABIA – Saudi Arabia’s First Milling Company (First Mills), a producer of flour, bran, animal feed, and wheat derivatives, has finalized the acquisition of Al-Manar Feed Company Ltd., a leading feed producer in the Kingdom.

The transaction, valued at SAR 77 million (US$20.52 million), was confirmed by First Mills on August 12.

The acquisition of 100% of Al-Manar’s shares will be financed through Sharia-compliant bank facilities, available cash, and other financing programs, according to the company. The financial results of the acquisition will be reflected in the company’s third-quarter 2025 consolidated statements.

Al-Manar, based in Makkah, specializes in high-quality animal feed for ruminants, poultry, and horses. Its integration into First Mills’ operations follows the board’s earlier approval, which was subject to successful dynamic and static operational tests to confirm both quality and quantity standards, along with efficiency benchmarks.

Commenting on the move, Abdullah Ahmed Al-Shehri, vice chairman of First Mills’ board, said that the acquisition is a significant milestone in First Mill’s journey to expand its operations and strengthen position across the feed market.

“We continue to pursue high-value opportunities for sustainable growth in support of the objectives of Saudi Vision 2030 and to enhance the contribution of local production to achieving food security, while serving our customers, including livestock and poultry breeders, across all regions of the kingdom, “he said.

The deal is expected to boost First Mills’ production capacity, adding at least 420 tonnes per day of feed output, raising its total daily production to 1,320 tonnes.

According to the company, the added capacity will help First Mills address rising demand in local and regional markets, expand its geographic reach, and diversify revenue streams.

On his part, Abdullah Abdulaziz Ababtain, chief executive officer of First Mills, said the acquisition would allow the company to broaden its product range and improve its market responsiveness.

“The acquisition will enable us to deliver a more comprehensive range of products and services, better meet the needs of the local market and reinforce the company’s long-term competitive position,” he said.

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