Saudi Arabian dairy company Almarai has bought the remaining share of its joint venture with PepsiCo for SAR255m (US$68m).
Almarai now has 100% ownership of International Dairy and Juice Limited (IDJ), having purchased PepsiCo’s 48% stake.
Riyadh-headquartered Almarai said the deal, announced in a stock exchange filing on Friday (17 February), would allow it to “further expand strategically in the wider region”.
IDJ manufactures and distributes food and beverages in Egypt and Jordan, as well as exports outside those two markets.
Almarai produces a range of food and drinks products in the dairy, poultry, bakery, infant nutrition and juice categories. It was founded in 1976 by Prince Sultan bin Mohammed bin Saud Al Kabeer and originally processed fresh milk and laban (a fermented-milk product).
Its JV with PepsiCo was formed in 2009 to focus on opportunities in south-east Asia, Africa and the Middle East, excluding the Gulf Cooperation Council countries where Almarai already had a strong presence. Later that year, IDJ bought a 75% stake in Jordanian dairy producer Teeba and in 2010 acquired Egypt milk, juice and yoghurt producer Beyti.
In 2012 Almarai also hinted it was looking to increase its 52% share in the JV.
It appointed a new CEO, Abdullah Nasser Al Bader, in 2021 as Majed Mazen Nofal resigned for personal reasons after only 11 months in the role. Al Bader had been with the company for more than 20 years and most recently served as executive vice-president for the firm’s bakery division.