Almarai unit to acquire Jordan’s Hammoudeh food industries for US$70M

SAUDI ARABIA – Saudi Arabia’s leading dairy company, Almarai, has expanded its footprint in the Middle East by acquiring Jordan’s Hammoudeh Food Industries for US$70 million.

The acquisition, made through Almarai’s subsidiary Teeba Investment for Developed Food Processing Company, reinforced the company’s strategy to grow and strengthen its presence in the region.

Hammoudeh Food Industries, a well-established dairy and cheese business with over 50 years of experience in Jordan, is known for its broad range of food and beverage offerings. 

Originally founded in the 1960s, the company started in animal feed before expanding into poultry and dairy farming, becoming a major player in Jordan’s food production sector.

Almarai’s decision to acquire the Jordanian company will enhance its ability to expand its operations and product range and leverage operational scale in Jordan. 

The move also positions Almarai to drive further sales growth and profitability in the Jordanian market, where dairy consumption is expected to continue rising.

In a statement, Almarai emphasized that the acquisition aligns with the company’s long-term vision of expanding its presence in key Middle Eastern markets. 

“This acquisition supports Almarai’s growth strategy, which aims to ensure consistent expansion in key markets. Hammoudeh’s longstanding presence in the Jordanian dairy and cheese market makes it an ideal fit for our growth ambitions,” the company said.

The acquisition will be financed through Almarai’s internal cash flows and is subject to regulatory approvals and the fulfilment of certain contractual conditions.

This move comes as Almarai continues to post strong financial results. In 2023, the company recorded a 14% increase in total production volumes, reaching 209 million metric tons (MT), which contributed to a 17% rise in revenue. 

Almarai’s poultry market share was reported at 87% in Kuwait, 34% in Saudi Arabia, and 19% in the United Arab Emirates.

In 2023, Almarai’s poultry revenue in Saudi Arabia reached approximately 3.52 billion Saudi Riyals (US$937.1 million), while revenue from other GCC countries was about 460 million Saudi Riyals (US$122.4 million). 

That same year, the company experienced a 12.9% year-on-year growth in poultry sales, translating to a 100.2 million Saudi Riyal (US$26.7 million) increase. 

Sales rose from 775.8 million Saudi Riyals (US$206.8 million) to 876 million Saudi Riyals (US$233.5 million).

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