NADEC signs SAR 85M binding agreement to acquire high-tech greenhouse assets

According to a statement to Tadawul, the assets are located within NADEC’s facilities in Haradh, Saudi Arabia, and comprise a high-tech greenhouse facility spanning approximately 6 hectares, along with the related assets and supporting infrastructure.

The facility uses hydroponic farming and climate-control systems to produce various types of fresh tomatoes year-round, including large tomatoes and small cherry tomatoes, in a controlled agricultural environment.

The acquisition includes the greenhouse structures, equipment and subsystems, certain operating assets, and any other assets specified in the purchase agreement.

NADEC said the facility is targeted to be handed over to the company in Q4 2026, subject to the terms and conditions stipulated in the agreement.

The facility has been operational since 2022. Pure Harvest developed and operated it using controlled-environment agriculture technologies, and the transaction represents a strategic transfer of the facility to NADEC.

NADEC will manage and operate the facility through its operations team, supported by additional specialized expertise. The seller will provide transitional support to facilitate the transfer of operational knowledge and expertise, while NADEC will leverage its existing production and distribution capabilities.

Completion of the transaction remains subject to fulfilling several conditions precedent under the agreement, including the termination of existing agreements in accordance with its terms, namely a product purchase agreement, lease agreement, utilities services agreement covering power, electricity and related services, and a framework agreement for the provision of shared services.

The transaction is also subject to obtaining any other regulatory or contractual approvals required for completion.

NADEC said the transaction will be financed through a combination of its internal resources and commercial bank financing.

The deal forms part of NADEC’s strategy to strengthen its high-tech protected agriculture capabilities through the ownership of existing, operational agricultural assets.

It aims to enhance integration and operating efficiency, enable NADEC to expand and develop its agricultural operations, and support local production, in line with its operational and strategic objectives, as well as food security targets and Saudi Vision 2030.

Each party will continue to operate independently in pursuit of its respective strategic objectives. The transaction represents an orderly completion of the separation of the parties’ interests, while maintaining their relationship within a balanced professional framework.

NADEC expects the transaction to have a positive impact following completion, including strengthening its high-tech protected agriculture capabilities and supporting revenue continuity and stability, which could contribute to improved financial performance and higher agricultural segment revenue.

Following completion of the handover procedures, which are expected on or around Nov. 1, 2026, NADEC expects to begin operating the facility in Q1 2027, with the financial impact of the transaction expected to be reflected gradually from H2 2027.

The company emphasized that signing the asset purchase agreement does not constitute completion of the transaction. Completion remains subject to fulfilling the terms and conditions set out in the agreement, obtaining any required approvals, where applicable, and completing the handover process.

NADEC will announce any material developments in due course.