ADNH Catering to Expand in Saudi Arabia After Acquiring Food Nation
Deal News | Feb 24, 2025 | Zawya
Abu Dhabi-listed ADNH Catering (ADNHC), a unit of Abu Dhabi National Hotels, is poised for further expansion in Saudi Arabia following its acquisition of Food Nation Catering. The transaction, nearing completion, bolsters ADNHC's presence in the school food segment, with expectations to generate AED 250 million in revenue from the sector within three to five years. ADNHC, which raised AED 864 million during its Abu Dhabi listing last year, already has a broad footprint in the private and public sectors, offering services in healthcare, education, and defense. CEO Clive Cowley highlighted ADNHC’s diversification and growth prospects, spurred by a robust market in the UAE estimated at AED 4 billion, and further opportunities in Dubai and the Northern Emirates. The company’s revenue rose by 12% to AED 443 million in Q4 2024, and Cowley emphasized its financial prudence with current cash resources and a revolving credit facility for future acquisitions.
Sectors
- Catering and Food Services
- Hospitality and Tourism
- Education Services
- Healthcare Services
Geography
- United Arab Emirates – ADNH Catering operates predominantly in UAE and has strategic plans for expansion in the region.
- Saudi Arabia – The acquisition of Food Nation and plans for expanding in Saudi Arabia make it a key geography in the article.
Industry
- Catering and Food Services – The article focuses on ADNH Catering, a company involved in providing diverse catering services, indicating its primary sector.
- Hospitality and Tourism – As a subsidiary of Abu Dhabi National Hotels, the expansion strategy reflects the broader hospitality and tourism industry.
- Education Services – The expansion into the school food segment underscores engagement with the education sector.
- Healthcare Services – With a move into Saudi Arabia focusing on healthcare, ADNHC’s operations highlight this sector's relevance.
Financials
- AED 250 million – Expected revenue from the school catering segment in Saudi Arabia within three to five years.
- AED 4 billion – Estimated addressable market for ADNHC in the UAE, as identified by company-commissioned studies.
- AED 864 million – Capital raised by ADNH Catering during its listing in Abu Dhabi last year.
- AED 443 million – Revenue reported by ADNH Catering in Q4 2024.
- AED 44 million – Profit reported by ADNH Catering in Q4 2024.
- AED 500 million – Annual revenue from support services already secured by ADNHC.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ADNH Catering (ADNHC) | Acquirer/Target Company | Company | A subsidiary of Abu Dhabi National Hotels listed on the Abu Dhabi stock exchange, involved in diverse catering services. |
| Abu Dhabi National Hotels (ADNH) | Parent Company | Company | Parent company of ADNH Catering, involved in hospitality services. |
| Food Nation Catering | Target Company | Company | A catering company recently acquired by ADNH Catering to expand into the school food segment. |
| Compass Arabia | Joint Venture | Company | A joint venture in which ADNH Catering holds a controlling stake, focusing on the healthcare and education sectors in Saudi Arabia. |
| Clive Cowley | Chief Executive Officer | Person | CEO of ADNH Catering, overseeing the company's strategic expansion and financial direction. |