SAUDI ARABIA – Saudi Arabia’s Almarai has acquired the food and beverage business of Jordan’s Hammoudeh conglomerate for SR263 million (US$70.1 million).
The deal was completed through Teeba Investment for Developed Food Processing Company, a subsidiary of Almarai.
Hammoudeh Food Industries, the food production arm of the Hammoudeh group, operates in the food and beverage sector, while the broader conglomerate has interests in agribusiness and chemicals.
The Jordanian company was founded in Amman during the 1960s, initially focusing on animal feed before expanding into poultry and dairy farming.
Today, Hammoudeh’s food and beverage division produces a variety of products, including poultry, and eggs.
In a statement announcing the acquisition, Almarai highlighted Hammoudeh’s established presence in Jordan, referring to it as “a longstanding dairy and cheese business with over five decades in the Jordanian market.”
Almarai also noted that the acquisition supports its growth strategy, which aims to ensure consistent expansion in key markets.
Founded in 1976 by Prince Sultan bin Mohammed bin Saud Al Kabeer, Almarai has grown significantly in recent years.
In 2023, the company recorded a 14% increase in total production volumes, reaching 209 million metric tons (MT), which contributed to a 17% rise in revenue.
Almarai’s poultry market share was reported at 87% in Kuwait, 34% in Saudi Arabia, and 19% in the United Arab Emirates.
In 2023, Almarai’s poultry revenue in Saudi Arabia reached approximately 3.52 billion Saudi Riyals (US$937.1 million), while revenue from other GCC countries was about 460 million Saudi Riyals (US$122.4 million).
That same year, the company experienced a 12.9% year-on-year growth in poultry sales, translating to a 100.2 million Saudi Riyal (US$26.7 million) increase.
Sales rose from 775.8 million Saudi Riyals (US$206.8 million) to 876 million Saudi Riyals (US$233.5 million).
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE