CATRION inks SAR 440.9M SPA to buy 55% of AKCC

Logo of CATRION Catering Holding Co.

CATRION Catering Holding Co. signed today, Dec. 31, a sale and purchase agreement (SPA) to acquire a 55% equity stake in Al Khalejiah Catering Co. (AKCC) together with a call option to acquire an additional 15% of AKCC share capital within a period of three years from the closing date of the transaction.

In a statement to Tadawul, the company said that the total purchase price for the transaction is up to SAR 440.86 million, comprising an initial cash payment of SAR 315.21 million, and performance-based earn-out payments of up to SAR 125.65 million conditional on the achievement of specific financial targets during financial years ending 2025, 2026 and 2027.

It added that the transaction is subject to customary closing conditions and regulatory approvals including regulatory clearance from the General Authority for Competition (GAC).

According to the statement, the sellers are several persons listed in the SPA as current shareholders of AKCC. The acquisition will be financed through CATRION’s internal funding sources and Shariah-compliant banking facilities.

AKCC is a hospitality and catering services provider that operates lounges within the airport and railway hospitality sectors across the Kingdom of Saudi Arabia. In addition, AKCC specializes in providing bakery services, providing food and beverage services for events, and delivering concierge services.

The company also noted that revenues for the last three years of the asset forming the subject matter of the deal are as follows: SAR 60.86 million revenue for 2022, SAR 159.69 million for 2023 and SAR 216.37 million for 2024.

The transaction supports CATRION’s strategic objectives to expand its footprint in the aviation and catering sector and aligns with its long-term plan to diversify its revenue streams and enhance operational efficiencies through the integration of complementary activities, said the statement.

CATRION will consolidate AKCC’s financial results after completing the deal, with a positive financial impact on CATRION’s financial statements expected by the end of Q2 2026, it added.

According to the statement, SNB Capital acted as the financial advisor to CATRION, with Baker Mckenzie Law Firm serving as CATRION’s legal advisor.

Any material developments regarding the agreement or acquisition will be announced in due course, it noted.