Egypt - EFG Hermes, the investment banking arm of EFG Holding and the leading investment bank in Frontier and Emerging Markets (FEM), announced today that its Investment Banking division successfully advised Kazyon, a prominent MENA-based discount retailer, on a merger and acquisition (M&A) deal.

In this deal, Kazyon acquired a 50% stake in Dukan, the only discount retailer in Saudi Arabia, marking its strategic entry into the Saudi market. Al Dabbagh Group, the existing shareholder of Dukan, retained the remaining 50% stake in the company. White and Case acted as legal counsel for Kazyon.

Karim Galal, Managing Director at EFG Hermes’ Investment Banking Division, said, “We are proud to have played a pivotal role in facilitating Kazyon’s landmark acquisition of Dukan. This deal aligns seamlessly with our strategic objective of expanding our presence in Saudi Arabia and highlighting the Kingdom’s immense investment potential across diverse sectors. This is the second collaboration between EFG Hermes and Kazyon, following EFG Hermes’ advisory role in Kazyon’s $76.5m capital raise/private placement in 2014. This successful track record is a testament to the longstanding relationship between the two entities. The deal also underscores our trusted capability to lead on transformative transactions, solidifying our position as the premier advisory house of choice in the region.”

Dukan is a fast-growing convenience retail grocery company in Saudi Arabia, founded in 2013 by Al-Dabbagh Group. Dukan has a chain of over 100 neighborhood stores across Jeddah, Makkah, and Al Taif, with plans to expand to Riyadh. It offers a full range of discounted basic groceries and a differentiated assortment of private label and exclusive brand products.

Established in 2014, Kazyon has emerged as a distinguished player in the regional discount retail sector, boasting a robust presence with over 1,000 stores in Egypt and Morocco by the end of 2023. Renowned for offering high-value products at competitive rates, Kazyon has successfully catered to millions of customers within its extensive network. This strategic acquisition is a significant milestone in Kazyon’s ongoing regional growth endeavors, which included the successful introduction of Kazyon in Morocco in 2023. The expansion into Saudi Arabia represents the next pivotal phase in Kazyon’s ambitious growth trajectory.

EFG Hermes continues to sustain its leading position in the market through its unrivaled advisory track record on the region’s most prominent, high-profile transactions. The deal is one of the major M&As EFG Hermes has advised on, which also includes Jadwa’s sale of a 100% stake in Meswak, worth $500m, Abu Auf’s sale of a 60% stake to Agthia, worth $115m, the sale of an 85.5% stake in SODIC to Aldar, worth $388m, and PIF’s $150m acquisition of a 33.4% stake in B.TECH. EFG Hermes also advised on seven IPOs in the region in the past year, including a number of landmark offerings in Saudi Arabia. Most recently, EFG Hermes advised on the $1.2bn IPO of ADES Holding Company on the Saudi Exchange, the $378m IPO of Riyadh Cables on the Saudi Exchange, and Lumi Rental Company’s $290m IPO on the Saudi Exchange.

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