Western Bakeries Co, a subsidiary of Saudi Arabia’s largest dairy producer Almarai, completed the acquisition of an additional 15 percent stake in Modern Food Industry (MFI), for a total value of 150 million riyals ($40 million).
The stake was acquired from Olayan Financing Co, Almarai said on Sunday in a bourse filing to Tadawul, where it is listed.
Following the acquisition, Western Bakeries’ stake rises to 75 percent of the capital of MFI, which manufactures long shelf-life bakery products, under the brand name, 7DAYS.
The transaction was fully financed from Almarai’s operating cash flows. The financial impact will be reflected Q2 2021 financial results, it added.
Modern Food Industries, which was set up in 2009 as a joint venture between Almarai, the Olayan Group and the Greek company, Chipta, is based in Riyadh and has manufacturing plants in Jeddah, Al Kharj and Hail.
(Writing by Brinda Darasha; editing by Daniel Luiz)
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