Alamar signs SPA to acquire Five Guys franchise at SAR 85M initial value

Logo of Alamar Foods Co.

Alamar Foods Co. signed a sale and purchase agreement (SPA) to acquire 100% of Cravia Co., for SAR 85 million subject to downward adjustment based on certain conditions in the SPA.

In a Tadawul statement, Alamar said Cravia Arabia is a Saudi limited liability company holding the exclusive franchise rights for the Five Guys brand in Saudi Arabia and operating 13 restaurants in the Kingdom.

The transaction supports Alamar’s strategy to strengthen its position in Saudi Arabia by entering the burger segment, the largest category within the Kingdom’s quick service restaurant (QSR) market, through a leading premium burger brand (Five Guys).

Cravia Arabia is debt-free and is expected to generate approximately SAR 17 million in post-IFRS 16 adjusted EBITDA for 2025.

The final transaction amount will be disclosed in due course, Alamar said.

It added that completion of the transaction is subject to obtaining the required regulatory approvals, securing the necessary franchisor and other third-party consents, and fulfilling the conditions precedent set out in the SPA, as well as customary closing adjustments.

The table below illustrates the financial statements for the asset over the past three years:

The transaction aims to expand into the burger category, the largest QSR segment in Saudi Arabia, by acquiring a leading premium burger brand, and to broaden Alamar’s multi-brand restaurant platform in the Kingdom while strengthening its presence in one of its core markets in line with its long-term growth strategy.

The positive financial impact will appear following completion of the transaction, subject to final regulatory approvals, the company said.