Saudi Arabian food and beverage group Almarai has agreed to acquire local bottled-water business Pure Beverages Industry Company for SR1.04 ($277m).
In a stock-exchange filing yesterday (15 June), Almarai said the deal is in line with its “growth strategy to expand its beverage portfolio and enhance its consumer offerings”.
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Almarai, which sells dairy and juice products under its namesake brand, added it is “confident that this acquisition will create value for its shareholders”.
Headquartered in Riyadh, Pure Beverages Industry Company owns the Ival and Oska brands, with factories in Riyadh, Jeddah and Dammam.
According to its website, Pure Beverages Industry Company was set up by Saudi conglomerate Ajlan & Bros. Group in 1979.
Almarai plans to finance the acquisition through its internal cash flows, with the completion of the transaction subject to contractual conditions and regulatory approvals in Saudi Arabia.
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By GlobalDataThe deal follows Almarai’s recent unsuccessful attempt earlier this year to acquire Jordan-based Hammoudeh Food Industries.
In March, Almarai said the deal could not proceed “due to factors beyond the company’s control, as the seller was unable to meet certain conditions required to complete the transaction”.
Almarai added it is “open to exploring future expansion opportunities, recognising the strategic importance of strengthening regional operations and expanding geographically to serve consumers in various markets”.
The group operates in dairy, poultry, bakery, infant-nutrition, and juice sectors.
In 2024, Almarai generated revenue of SR20.98bn, up from SR19.58bn in 2023. Operating profit stood at just under SR3bn, versus SR2.69bn a year earlier. Net profit was SR2.31bn, against SR2.05 the year previous.
According to GlobalData, Just Drinks’ parent, the size of Saudi Arabia’s packaged water market in volume terms was 3.88bn litres last year. The data and analytics group forecasts growth of 3.9% this year to 4.03bn litres.
In March, Berain Water, another Saudi bottled-water business, attracted a new investor. Hassana Investment Company acquired a 40% stake in Berain from Rajhi-Invest.
Berain has three production plants in Jeddah and Riyadh, and markets bottled water in multiple size options.
