ADNH Catering Expands with Acquisition of Food Nation
Deal News | Jan 29, 2025 | Zawya
ADNH Catering, a subsidiary of Abu Dhabi National Hotels, has acquired Food Nation Catering Services in an effort to increase its presence in high-growth sectors. This acquisition represents the firm's second foray into the catering business in recent months, following its initial public offering (IPO) on the Abu Dhabi Securities Exchange, which raised AED 864 million ($235 million). Food Nation caters to over 70,000 students across the UAE and employs more than 300 staff. The transaction is set to conclude in the first quarter of the year. This strategic acquisition aligns with ADNH Catering's broader goals to expand in promising industries. Previously, ADNH Catering also increased its stake in a Saudi joint venture by acquiring an additional 20% equity from Compass Group.
Sectors
- Hospitality
- Catering
- Education Services
Geography
- United Arab Emirates – The acquisition by ADNH Catering involves Food Nation Catering, which operates in the UAE, serving over 70,000 students.
- Saudi Arabia – ADNH Catering recently acquired an additional 20% stake in its Saudi joint venture, highlighting its geographical interests in the Gulf region.
Industry
- Hospitality – The acquisition is part of Abu Dhabi National Hotels' strategy to expand its catering business within the hospitality sector.
- Catering – Food Nation is a catering service provider, making this acquisition relevant to the catering industry, which is part of the broader hospitality sector.
- Education Services – Food Nation's focus on school catering connects the acquisition to the education services industry by serving a large number of students.
Financials
- AED 864 million ($235 million) – Capital raised by Abu Dhabi National Hotels during its IPO in October.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ADNH Catering | Acquirer | Company | A subsidiary of Abu Dhabi National Hotels focusing on catering services. |
| Abu Dhabi National Hotels | Parent Company | Company | A large hotel management and tourism company based in Abu Dhabi. |
| Food Nation Catering Services | Target | Company | A school catering business in the UAE serving over 70,000 students. |
| Compass Group | Seller | Company | An existing joint venture partner in Saudi Arabia from which ADNH Catering acquired additional shares. |