Arab News: Saudi Arabia’s BinDawood Holding Co. agreed to acquire a 51 percent stake in Vaza Food Co. for SR217.9 million ($58.06 million), as the supermarket operator expands into higher-margin premium food segments.
In a bourse filing, BinDawood Holding Co. said it will fund the acquisition through its internal resources and available financing facilities.
The acquisition underscores the firm’s push to diversify revenue streams beyond core grocery retail, targeting high-value categories such as premium confectionery and specialty foods.
Vaza’s portfolio includes the Pocodor premium chocolate brand, alongside bakery and traditional sweets labels such as La Bonte and Badea, and food concepts including GRYB, Shahwiyat Qandoorah and HLO Coffee.
In the bourse filing, BinDawood stated: “The transaction is expected to expand the Group’s presence in the high-quality products segment, leveraging Vaza’s distinguished brands, product quality and strong customer base.”
It added: “This will enhance the diversity of the product portfolio and increase the attractiveness of the offerings provided to customers.”
The statement added that the acquisition also aligns with the objectives of Saudi Vision 2030 in supporting local food manufacturing, strengthening national supply chains, and increasing the private sector’s contribution to the Kingdom’s gross domestic product.
The acquisition is expected to bolster BinDawood Holding Co.’s value chain integration by utilizing Vaza’s advanced manufacturing capabilities.
“The transaction is also expected to generate operational efficiencies through improved procurement and logistics, as well as the consolidation of certain support functions, which may positively impact operational efficiency over the medium to long term,” added BinDawood Holding.
The deal remains subject to regulatory approvals and certain adjustments as per the SPA terms.
In March, BinDawood Holding Co. reported net profit of SR269.93 million for 2025, down 0.8 percent year on year.
Vaza reported steady growth in recent years, with revenue rising to SR93.1 million in 2024 from SR45.6 million in 2023, while net profit increased to SR21.5 million from SR14.7 million over the same period.
https://www.arabnews.com/node/2639046/business-economy
