Dubai: AlRaha AlSafi Food Co has completed its $540 million acquisition of First Milling Company (MC-1).
MC-1 is the largest among the four milling companies, which is part of Saudi Grains Organization’s (SAGO) planned privatisation of Saudi flour mills and grain silos, previously owned by the Public Investment Fund (PIF).
The transaction is a result of “extensive” work carried out with the National Centre for Privatisation (NCP) and SAGO, the company said in a statement.
“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 transaction team of the AlRaha AlSafi Food Co., for this acquisition, was led by Almutlaq Group, 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.
“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,” said Abdullah Bin Sultan Alkenany, Vice Chairman AlRaha AlSafi Food.
“The company has significant industrial assets that are strategically located to serve its business clients and consumers across the Kingdom,” he added.