ADNH Catering Boosts Stake in Saudi Joint Venture to 50%
Deal News | Dec 13, 2024 | Zawya
ADNH Catering Group, a prominent food and support services provider in the UAE, has entered into a Sale and Purchase Agreement (SPA) with Compass Group to acquire an additional 20% equity stake in its Saudi Joint Venture, Compass Arabia. This acquisition will increase its ownership from 30% to a controlling 50% stake, alongside Al-Rushaid Petroleum Investment Company, which will hold the remainder. The transaction is subject to regulatory approvals and is expected to conclude in Q1 2025, after which the joint venture will be rebranded. ADNH Catering views the Saudi market as a strategic growth opportunity, and this move aligns with its expansion strategy in the GCC region. Riyadh's dynamic growth and the burgeoning healthcare sector present significant market opportunities for ADNH Catering, which aims to leverage its extensive industry experience and reputation to capitalize on these prospects. The transaction comes shortly after ADNH Catering's successful IPO, underscoring its commitment to scaling operations beyond its dominant UAE market.
Sectors
- Food and Support Services
- Private Equity and Investment
- Hospitality and Services
Geography
- United Arab Emirates – ADNH Catering Group, headquartered in the UAE, represents a significant market participant in this region.
- Saudi Arabia – The transaction focuses on a joint venture in Saudi Arabia, highlighting the strategic importance of this market for ADNH Catering Group's expansion plans.
Industry
- Food and Support Services – The article primarily revolves around ADNH Catering Group's operations which involve food preparation, service, and support functions such as cleaning and housekeeping within the UAE and Saudi Arabian markets.
- Private Equity and Investment – The transaction involving the acquisition of an additional equity stake in a joint venture epitomizes investment strategies and private equity operations, highlighting ADNH Catering’s strategic equity expansion plans.
- Hospitality and Services – ADNH Catering's focus on the Saudi market, particularly its food services and support roles, aligns with the hospitality sector, catering to diverse client needs.
Financials
- 20% – The stake acquired by ADNH Catering Group to increase its equity in Compass Arabia from 30% to 50%.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ADNH Catering Group | Acquirer | Company | A leading food and support services provider in the UAE, pursuing growth through increased stake in its Saudi joint venture. |
| Compass Group | Seller | Company | An international catering and support services company selling its 20% stake in the Saudi Joint Venture to ADNH Catering. |
| Al-Rushaid Petroleum Investment Company | Joint Venture Partner | Company | Will hold an ongoing 50% stake in the Saudi Joint Venture alongside ADNH Catering. |
| Compass Arabia | Target | Company | A joint venture in Saudi Arabia subject to increased equity acquisition and future rebranding post-transaction. |