Al Kuzama acquires 35% stake in Raed Food for SAR 30M

The deal aims at enhancing the company’s market share and expanding into various sectors

Al Kuzama Trading Co. acquired a 35% stake in Raed Food, a limited liability company operating in fast-food restaurant sector, for SAR 30 million.

In a statement to Tadawul, the company said that the acquisition was fully funded in cash, adding that the agreement includes the customary terms, conditions, and warranties provided by each party.

The deal aims at enhancing the company’s market share and expanding into various sectors and fields, in line with Al Kuzama’s strategic objectives and vision for growth and expansion.

This will be achieved by strengthening its presence in the restaurant sector through strategic partnerships and investments that support the diversification of its business portfolio and align with the aspirations of the local market.

The financial impact of this acquisition is expected to commence following the completion of the ownership transfer and the recognition of profits arising from the company’s equity stake. This acquisition is anticipated to enhance the company’s market share and enable entry into new sectors and activities, thereby strengthening its overall financial position, the statement added. 

According to data available on Argaam, Al Kuzama signed, in August, a non-binding memorandum of understanding (MoU) to acquire a 60% stake in Raed Food.