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Al Watania Poultry is reportedly mulling selling the company for as much as SAR 2 bn (USD 532 mn), Bloomberg reports citing people familiar with the matter. The poultry producer — which is the largest in the Middle East — tapped BSF Capital as advisor on the possible transaction, the sources said, adding that talks are still ongoing and could see the planned sale delayed or scrapped entirely.
Al Watania is looking to capitalize on a boost to the food industry amid Saudi’s economic overhaul, with food security rising in importance following supply chain disruptions and inflation caused by Covid-19 and the war in Ukraine, the business information service writes.
About Al Watania: Established in 1977 by Sulaiman Al Rajhi — who also founded Al Rajhi Bank with his brother — the Saudi poultry giant processes upwards of 1 mn birds and 1.5 mn eggs a day. It recently opened a 17.7k kW cooling plant, the region’s largest, to serve an automated slaughterhouse that processes 36k birds per hour.
IN CONTEXT- This follows similar M&A in the Saudi food industry: BRF Arabia, a joint venture between Brazilian food processor BRF SA and PIF-owned Halal Products Development Company, agreed last month to acquire a 26% stake in Addoha Poultry, one of the Kingdom’s largest chicken suppliers, for SAR 316.2 mn (USD 84.3 mn). Some USD 58 mn of the new investment is earmarked for expanding production at Addoha.
