Saudi’s Savola agrees to buy snack maker Bayara for $260 million

A subsidiary of Saudi Arabia’s Savola Group has signed an agreement to buy manufacturer and distributor of snacks and cooking ingredients Bayara Holding Limited.

Savola Foods Company will acquire 100% of Bayara’s issued share capital, the company said in a regulatory filing on Sunday (July 11).  

The deal of $260 million will be financed through a combination of operating cash flows and bank loans.

The acquisition is subject to regulatory approval.

Bayara operates in Saudi Arabia and the United Arab Emirates.

Its own-brand snacks include raw and roasted nuts, dates, seeds, dried fruits and confectionery. The cooking ingredients it distributes are herbs, spices, and pulses.

Savola said the acquisition is part of its strategy to enter attractive, value-added categories with increasing appeal in the food sector.

Savola Group posted an 11% drop in net profit for January through March this year as retail sales slumped compared to the same period last year.

The company’s food business is mainly in staples such as edible oil and pasta. It also runs a retail line comprising the Panda grocery chain in Saudi Arabia and Egypt, and its investment arm includes a 34.52% shareholding in Almarai and 51% ownership of Al Kabeer Group.

Almarai is also in expansion mode in line with the Saudi government's increased focus on food security. 

The company last month acquired the production facility of UAE-headquartered Binghatti Beverages Manufacturing, and prior to that said in May that it was investing 6.6 billion riyals ($1.76 billion) to double its market share in poultry over the next five years.

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