AlRaha AlSafi Food Co, consisting of Almutlaq Group, AlSafi Holding Co., Abunayyan Trading Co. and Essa Al-Ghurair Investment LLC, announced the completion of First Milling Company (MC-1) through the Phase-1 competitive tender of the Saudi flour mills privatisation for $540 million (SAR 2.03 billion).
The transaction is a culmination of extensive work carried out with the National Centre for Privatisation (NCP) and the Saudi Grains Organization (SAGO). MC-1 is the largest among the four milling companies, which is part of SAGO’s planned privatisation of Saudi flour mills and grain silos, previously owned by the Public Investment Fund (PIF).
“The acquisition represents an attractive opportunity for the private sector to invest in one of the largest flour markets in the Middle East and North Africa with high and appealing growth rates, to further boost private sector productivity and improve product quality,” said Tariq Almutlaq, Chairman AlRaha AlSafi Food.
“The company plans to invest in human resources, technologies and to develop innovative products that address the evolving needs and requirements of our business clients and discerning consumers in Saudi Arabia,” Almutlaq added.
“We are extremely excited to participate in this critical basic food industry and we look forward to being part of the realisation of Vision 2030 and to accelerate the transformation and growth of the flour milling and feed industry of Saudi Arabia,” said Abdullah Bin Sultan Alkenany, Vice Chairman AlRaha AlSafi Food.
“MC-1 is a unique company with distinguished leadership and highly skilled team that has been at the cutting edge of the milling industry in Saudi Arabia. The company has significant industrial assets that are strategically located to serve its business clients and consumers across the Kingdom” he added. The transaction team of the AlRaha AlSafi Food Co., for this acquisition, was led by Almutlaq Group – Vincent Bhatt, with advisory support from Canaccord Genuity (Dubai) Ltd., Synergy Consulting, Covington & Burling LLP as sponsors counsel and Ashurst LLP being lenders counsel. Lenders on the transaction were Alinma Bank and Gulf International Bank.