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Kazyon sets foot in Saudi: Kazyon Limited, the UK-based parent company of Egyptian discount supermarket chain Kazyon, has acquired a 50% stake in Saudi grocery chain Dukan — the Kingdom’s sole discount retailer — through a SAR 250 mn (c. USD 66.7 mn) capital increase, according to a press release (pdf). The transaction marks Kazyon’s first investment in Saudi Arabia.
Where is the money going? The investment will help roll out more Dukan stores across the Kingdom as part of Kazyon’s plan to expand its portfolio to 5k stores across Egypt, Morocco, and Saudi Arabia within the next five years, a fivefold increase from its current network, backed by its own end-to-end logistics network.
All about Kazyon: Kazyon was founded in 2014 by our friend Hassan Heikal, the former EFG Hermes CEO, and has grown to become the largest discount retailer in Egypt. It sells a range of food and household products at competitive price points. Kazyon entered the Moroccan market last October.
“The transaction was funded by introducing to the capital structure of Kazyon a global sovereign wealth fund as we solidify our position as a leading grocery retailer in the region,” Heikal said.
ICYMI- A consortium led by our friends at Africa-focused private equity firm Development Partners International (DPI) invested USD 165 mn in Kazyon last April to help the company expand its presence in Egypt. In addition to Heikal and DPI, the company counts among its shareholders “a leading global sovereign wealth fund, major development finance institutions, FIM Capital, Sango Capital, and regional family offices.”
ADVISORS- Evercore Partners, EFG-Hermes, White & Case and PWC.
