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A unit of Saudi dairy producer Almarai Company has signed an agreement for the 100% acquisition of Jordan’s Hammoudeh Food Industries for 263 million Saudi riyals ($70 million).
Almarai is completing the deal through its subsidiary, Teeba Investment for Developed Food Processing Company.
Almarai said the acquisition of the 50-year-old dairy and cheese business, will strengthen its position in Jordan and aligns with the company’s broader growth strategy to maintain sustainable growth in core markets and geographies.
The company added the deal will further its ability to expand its operations and product range and leverage operational scale in Jordan to drive sales growth and profitability.
The transaction will be financed by Almarai’s internal cash flows and is subject to certain contractual conditions and regulatory approvals.
On Sunday, Almarai posted a Q3 2024 net profit of SAR 570.45 million, up from SAR 486.26 million posted over the same period last year.
The company also posted a net profit of SAR 1.88 billion in the first nine months of 2024, up from SAR 1.67 billion posted for the same period last year. The Saudi company attributed the 12.15% annual growth in net profit to higher revenue, cost control, favourable product mix, and stabilised commodity costs.
(Writing by Bindu Rai, editing by Daniel Luiz)
