Bahrain Family Leisure Company B.S.C (BFLC) and DGC Hospitality & Partners, the food and beverage investment arm of Dividend Gate Capital (DGC) have signed an MOU in October 2022 for a potential M&A transaction between the two companies. SICO BSC (c), a leading regional asset manager, broker, market maker and investment bank (licensed as a wholesale bank by the CBB), has been appointed as advisor to BFLC on the M&A deal. Grant Thornton has been appointed as the advisor to DGC Hospitality.

The two leading players in Bahrain’s food & beverage (F&B) and hospitality sector have signed an MOU to explore the possibility of a potential consolidation between the companies, which would result in a powerful market player with improved efficiencies and an increased market share. The MOU outlines the intent of the parties to negotiate and finalize the terms and conditions of the deal, which is in line with the region’s initiatives to expand the tourism sector as part of overall economic growth plans. The F&B and hospitality industries already play a significant role in Bahrain’s economy and are on track for future growth.

Commenting on the future potential of the deal, Abdul Latif K. Al-Aujan, BFLC Chairman, said, “Bringing together the resources, professional expertise, and complementary assets of our two companies will allow us to offer our customers and shareholders a superior value proposition. We are confident that we will be able to complete this process swiftly and efficiently with the guidance of the experienced investment banking team at SICO. Our targeted partnership with Dividend Gate Capital has the potential to grow both our company and Bahrain’s F&B and hospitality sector, and we look forward to crossing this new milestone.”

“This proposed deal with BFLC comes after a number of partnership agreements that we have finalized in the F&B sector as part of our large-scale investment project to grow SMEs in the Kingdom. We are excited to be taking this step towards a prospective consolidation, which would leverage our joint strengths to maximize stakeholder value and undoubtedly spur industry growth” said Talal Ali AlZain, DGC Chairman.

“SICO is proud to be mandated as the advisor on a deal where the two entities involved have clear synergies that can be brought together to create real value in Bahrain’s F&B sector. We are committed to working closely with BFLC to advise on financial and strategic planning, and to facilitate and support on negotiations and due diligence in a timely manner,” said Najla Al-Shirawi, CEO of SICO. 

SICO investment banking has a long track record as a market leader and the partner of choice for M&A deals and IPOs in Bahrain. The SICO team has advised on some of the country’s largest and most complex transactions such as the KFH/AUB acquisition and dual listing, one of the largest banking acquisitions in recent history, the AMP Terminals IPO, the most successful IPO on the Bahrain Bourse in a decade, and the acquisition of Bahrain Islamic Bank (BISB) by National Bank of Bahrain (NBB).   

The transaction is subject to reaching mutual agreement on valuations, the successful completion of due diligence, the finalization of definitive agreements, and the satisfaction of other closing conditions, as well as regulatory and shareholder approvals.

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About BFLC

Bahrain Family Leisure Company B.S.C. (BFLC) is a Bahraini public shareholding company registered with the Ministry of Industry and Commerce in the Kingdom of Bahrain. The Company obtained its commercial registration in 1994. The principal activities of the Company are operating restaurants, providing services related to family entertainment, supply of amusement related equipment and investing in businesses with similar objectives to those of the Company.

The Company currently owns and operates franchise restaurants in the Kingdom under the name of “Bennigan’s” and own developed concepts restaurant under the name of “Cucina Italian Restaurant” and Kazbah Catering. 

About Dividend Gate Capital

Dividend Gate Capital is a private equity investment firm seeking investment opportunities in a variety of sectors within the Kingdom, Middle East, and Europe. Founded in 2017, Dividend Gate Capital has since evolved to become a regional leader in investment management, accumulating a comprehensive investment portfolio, numerous assets, and a wide range of services.

Expanding on its strong overall performance and ongoing diversification, Dividend Gate Capital has a united purpose of generating opportunities for firms operating in key economic growth areas including hospitality, industrial, innovation, and healthcare, while making investments more lucrative, efficient, and diverse to contribute to the prosperity of the GCC region. Dividend Gate Capital employs a private equity model to invest in a comprehensive portfolio of income-generating assets and growth prospects in order to attain a holistic approach to securing regular income and capital gain.

About SICO

SICO is a leading regional asset manager, broker, market maker and investment bank, with USD 4.8 bn in assets under management (AUM). Today SICO operates under a wholesale banking licence from the Central Bank of Bahrain and oversees three wholly owned subsidiaries: an Abu Dhabi-based brokerage firm, SICO Financial Brokerage, a specialised regional custody house, SICO Fund Services Company (SFS), and SICO Capital, a Saudi-based investment banking company. Headquartered in the Kingdom of Bahrain with a growing regional and international presence, SICO has a well-established track record as a trusted regional bank offering a comprehensive suite of financial solutions, including asset management, brokerage, investment banking, and market making, backed by a robust and experienced research team that provides regional insight and analysis of more than 90 percent of the region’s major equities. Since inception in 1995, SICO has consistently outperformed the market and developed a solid base of institutional clients. Going forward, the bank’s continued growth will be guided by its commitments to strong corporate governance and developing trusting relationships with its clients. The bank will also continue to invest in its information technology capabilities and the human capital of its 100 exceptional employees.

Media Contact:
Ms. Nadeen Oweis
Head of Corporate Communications, SICO
Email: noweis@sicobank.com