Saudi Arabian multinational dairy company Almarai has signed an asset purchase agreement to acquire the UAE production facility of Binghatti Beverages Manufacturing (BBM) for $58.5 million (215 million dirhams).
The transaction, which is subject to obtaining certain regulatory approvals, will be fully funded from Almarai’s operating cash flows, the UAE-based beverage manufacturing factory said in a statement to the Tadawul stock exchange, where its shares trade.
Almarai has noted that the acquisition will improve its capacity to serve clients by broadening the region’s beverage offerings. The diary firm is in the process of expanding its product diversity as the Middle East region focuses on food security.
Binghatti Beverages is a subsidiary of Binghatti Holding, the Dubai-based conglomerate with interests in real estate, hospitality, consumer goods, construction, and so on. According to the company, the value of its real estate portfolio exceeds $952 million (Dh3.5 billion).
Last month, Almarai’s subsidiary Western Bakeries Company purchased an additional stake in Riyadh-based snacks maker Modern Food Industries for $40 million (150 million Saudi riyals). Western Bakeries Company’s share in Modern Food Industries increased to 75 percent as a result of the purchase, Almarai stated.
The company’s first-quarter net income increased slightly to $102 million (385.9 million riyals) on a 1.46 percent increase in revenue to $970 million (3.64 billion riyals).
Further, the company has revealed that it has spent $79 million (299.1 million riyals) on investment activities in the first quarter, down $11 million (45 million riyals) from the same period last year before the COVID-19 movement restrictions were imposed.