Olayan Financing Company (OFC) has acquired 51% stake in juice and beverage manufacturing firm Gulf Union Foods (GUFC) from a group of investors including Jadwa Investment, for an undisclosed amount.

The move is in line with the company’s strategy to expand its presence to new markets.

Jadwa has sold 30% stake in Gulf Union Foods that was owned by its Food and Beverage Opportunity Fund, as part of the transaction.

Gulf Union Foods currently operates 12 production lines and has 1200 dedicated staff. It offers juice, nectar, still drinks and floats under nine brands.

Jadwa Investment managing director and CEO Tariq Al Sudairy said that GUFC has registered a compound annual growth rate of 22% in revenues and 14% in net income, during Jadwa’s holding period.

"We are proud of our partnership with GUFC and wish their shareholders and management team continued success with OFC," added Sudairy.

Gulf Union Foods chairman Sulaiman Salih Al Rashoudi said, "The Jadwa team provided world-class advice for our various strategic and business initiatives and enabled us to pursue significant growth opportunities. At the same time, I am delighted to welcome OFC as our majority shareholder, and I look forward to working with them to continue building on GUFC’s success."

Over the years, OFC is said to have invested in various joint ventures with different local as well as multinational companies.


Image: Jadwa Investment CEO Tariq Al Sudairy. Photo: courtesy of Jadwa Investment