Saudi’s BinDawood to acquire 51% Stake in Vaza Food Company for US$58M
The internally financed deal aims to improve BinDawood’s supply chain efficiency and expand its high-end product offerings across its retail network.
SAUDI ARABIA – BinDawood Holding Company, a leading retail conglomerate, has signed a definitive agreement to acquire a 51% controlling stake in Vaza Food Company, a prominent local manufacturer of sweets and pastries, for SAR 217.9 million (US$58.03M).
The transaction, fully financed through internal resources, marks a strategic move to enhance BinDawood’s supply chain resilience and enrich its premium product portfolio across its extensive retail network in the Kingdom.
The deal positions BinDawood to vertically integrate its operations by securing a reliable, high-quality, locally produced source of confectionery items.
Vaza Food, established over two decades ago, specializes in traditional Saudi sweets such as maamoul, kunafa, and baklava, as well as innovative pastry lines tailored for modern consumers.
With annual revenues exceeding SAR 150 million (US$ 39.95M) and a state-of-the-art facility in Riyadh, Vaza supplies major supermarkets and hypermarkets, making it an ideal acquisition target for BinDawood’s ambitions in the fast-growing FMCG sector.
BinDawood, known for its upscale hypermarkets and supermarkets under brands like BinDawood and West Zone, operates over 80 outlets primarily in Jeddah, Riyadh, and Dammam.
The move to expand into high-end sweets and pastries aligns with broader market trends in the Kingdom.
This acquisition aligns with the company’s Vision 2030-inspired diversification strategy, emphasizing local partnerships and self-sufficiency amid rising demand for premium, authentic Arabian delicacies.
By gaining majority control, BinDawood can streamline procurement, reduce dependency on imports, and introduce exclusive Vaza products, such as organic and health-focused variants, to its shelves, potentially capturing a larger share of the SAR 20 billion (US$5.33B) sweets market.
This acquisition also follows BinDawood’s pattern of strategic M&A activity. In December 2025, the company announced the acquisition of a 51% stake in Wonder Bakery LLC, a UAE-based industrial frozen bakery, to integrate food manufacturing capabilities and localize production in Saudi Arabia, in line with Vision 2030’s food security goals.
This acquisition underscores broader trends in the Gulf’s agribusiness scene, where retailers are investing in upstream manufacturing to combat supply disruptions and meet sustainability goals.
The deal is expected to close within three months, pending regulatory approvals from the General Authority for Competition.
Once completed, the partnership is expected to create new opportunities for product innovation, operational efficiency, and expansion within Saudi Arabia’s fast-growing retail and food manufacturing sectors.
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