SAUDI/KUWAIT: Savola confirms Americana takeover talks
PE firms also said to be interested in Americana
Saudi Arabian food manufacturer Savola Group has confirmed it has started initial talks with the Kuwait Food Co., also known as Americana Group, to acquire a stake in the company.
In a bourse filing, Savola said the talks have not yet led to a "fundamental development", but a disclosure agreement has been signed.
Reports suggest private-equity firms Advent International and TPG Capital have also submitted bids for the firm. KKR and CVC Capital Partners are also said to have tabled a joint offer.
Americana's food manufacturing arm produces brands including California Garden beans and Farm Frites frozen vegetables, supplying products to supermarkets across the Middle East. It is also a franchise operator of a number of restaurants across the region, including KFC and Pizza Hut.
The sale is expected to fetch about US$5bn.
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