Kuwait’s Mezzan Holding acquires 70% stake in Al Safi

Kuwait-listed Mezzan Holding has completed its acquisition of a 70 percent stake in Riyadh-based Al Safi Food Company, giving it a platform to manufacture and distribute food and beverage products in the kingdom.

Mezzan, one of Kuwait’s largest conglomerates, acquired the stake through a capital injection of SAR 90.75 million (KD7.3 million), which includes planned capital expenditures until the end of 2017.

The Al Faisaliah Group, which founded Al Safi Food Company, will retain a 30 percent stake in the firm, the statement said.

“The acquisition marks our real entry into the kingdom’s food manufacturing and distribution sector,” said Mezzan’s chief executive Garry Walsh.

“Though the company was acquired while in a start-up mode, it has a high turnaround potential and will immediately provide a new platform for both margin growth and distribution scale,” Walsh explained.

By 2018, Mezzan expects its Saudi business to contribute between five and 10 percent to its top line, he added.

Al Safi – which will soon be renamed to Mezzan Food Company – will have exclusive rights to manufacture, market and distribute Al Faisaliah Group's bakery and snacks line. It will also have the right to import, manufacture, sell and distribute all brands under Mezzan’s umbrella.