With this deal, Almarai fully controls the Joint Venture with PepsiCo in Egypt and Jordan.
Saudi Arabian dairy company Almarai has purchased the remaining 48% stake in International Dairy and Juice (IDJ) from PepsiCo for SAR 255 million (approx. $68 million).
Almarai Investment Holding bought PepsiCo’s 48 per cent share in IDJ, increasing Almarai’s stake in the Company to 100 per cent ownership from 52 per cent previously, in a deal worth 255 million Saudi riyals ($68 million), it said in a filing to the Tadawul stock exchange on Sunday.
“The full ownership of IDJ will allow Almarai to further expand strategically in the wider region,” the Company said.
The purchase is funded from Almarai’s internal cash flows, the Company said.
IDJ was a joint venture between Almarai and PepsiCo before the deal. It specialises in food and beverage manufacturing and distribution in Egypt and Jordan. The Company also exports its products to other markets.
With the deal, the Saudi Arabian Company aims to further strengthen its regional presence. Almarai produces a range of food and drink products across the dairy, bakery, poultry, juice and infant.
Almarai is a significant player in the food and beverage industry in the Middle East, with operations in Saudi Arabia, Egypt, Jordan, and the UAE. In addition to dairy products, the Company also produces poultry, baked goods, and juices.
The Company has been expanding its footprint in recent years as it seeks to capitalise on the growing demand for food and beverages in the region. With the acquisition of IDJ, Almarai is expected to further strengthen its position in the food and beverage industry in the wider region.