Newly-formed private-label manufacturer Windoria is to acquire Al-Fursan Al-Maghawear, a Saudi Arabian manufacturer and distributor of sauces and condiments.
In a statement Investindustrial, Windoria’s private-equity backer, said the deal, struck for an undisclosed sum, is expected to close by the end of October.
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Two weeks ago, Investindustrial announced it had combined US private-label manufacturer Winland Foods and Italy’s La Doria to form Windoria, a new business generating $4bn in sales.
Al-Fursan specialises in sauces and condiments, in particular ketchup and vinegar. It owns several brands, including Baidar.
The condiment firm, which has approximately 300 employees, has a manufacturing facility in Riyadh, as well as a distribution network comprising six sales offices and seven warehouses across Saudi Arabia.
According to Investindustrial, the transaction will enable Windoria and Al-Fursan to leverage both “local and regional expertise”, supporting “expansion and innovation to unlock the sector’s full potential in the Middle East”.
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By GlobalDataEarlier this year, the PE firm partnered with the Saudi Industrial Development Fund Investment Co. to establish a physical presence in the Middle East.
The Al-Fursan deal marks “the first-ever majority transaction in Saudi Arabia by a company backed by a European private equity firm,” the statement said.
Andrea Bonomi, chairman of the industrial advisory board of Investindustrial, said: “We are proud to announce the first acquisition in Saudi Arabia, in a sector where we have deep expertise, and which has significant opportunity for growth.
“We expect private-label penetration to increase materially across the Middle East and Asia in the coming years, creating an exceptional opportunity to accelerate category development and capture untapped potential for Windoria, the global leader in the space.”
He added: “The acquisition of Al-Fursan reflects Investindustrial’s commitment to transforming local champions into global leaders. Investindustrial remains focused on continuous improvement and driving innovation, to build the firm of the future.”
Winland Foods is a producer of private-label and branded products for foodservice and retail customers. La Doria makes private label tomato-based sauces, canned foods and dried pasta. Together, the companies before the Al-Fursan deal had 28 manufacturing plants and 5,000 employees.
