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- Almarai to acquire Pure Beverages, owner of Ival and Oska water brands, in a USD 277M deal to expand beverages.
- The acquisition supports Almarai’s strategy to grow its non-dairy portfolio and boost market presence in Saudi Arabia.
- Deal will be funded internally and is pending regulatory approvals and fulfillment of contractual conditions in Saudi Arabia.
Almarai
What happened? Almarai Co. is acquiring 100% of the shares of Pure Beverages Industry Co. for approximately USD 277 million (SAR 1.04B).
Who are they? Pure Beverages is a producer of premium bottled drinking water in Saudi Arabia. Established in 1979 by Aljan & Bros, it also the owner of the Ival and Oska water brands. The company operates advanced facilities equipped with innovative production technologies. It also seeks to adhere to the highest international quality standards and sustainable industry practices.
Almarai Co, is Saudi Arabia based integrated consumer food and beverage group, primarily known for its dairy products. It operates in juices, beverages, poultry, infant formula, and bakery.
Acquisition
What is the deal? Almaria has stated that this acquisition aligns with its growth strategy to expand its beverage portfolio. In addition, it also aims to strengthen its market presence. Furthermore, the company states that it is confident that the deal will deliver added value to its shareholders.
The acquisition will be financed through Almarai’s internal cash reserves. Moreover, the completion of the transaction remains subject to meeting all contractual obligations and conditions. It also remains subject to securing the necessary regulatory approvals in Saudi Arabia.
Previously in March, Almarai said its plan to acquire the shares of Hammoudeh Food Industries by one of its subsidiaries for SAR263 million fell through. This was because the seller was unable to meet the conditions required to complete the transaction.
Bottom Line: Almarai’s move signals a renewed push to diversify and tap into Saudi Arabia’s growing bottled water market. The company appears keen to close a deal that not only broadens its beverage portfolio but also reinforces its local manufacturing footprint.
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