Premier Foods is a producer of value-added halal meat and poultry products to the foodservice industry in the Middle East.
Agreed for a fee of SAR108m (US$28.7m), Almarai said the move would further enhance its footprint for expansion in the foodservice channels and there were no related parties in the acquisition.
Almarai is the largest dairy products company in the Middle East, but it also has brands such as Alyoum, which offers premium poultry products. The business entered into the poultry sector in 2009 through the acquisition of Hail Agricultural Development Company (HADCO) and invested in a “world-class” production facility.
Alamar Foods established Premier Foods to support its retail division, supplying over 30 international food brands and exporting to 14 countries around the world.
Almarai added that the transaction was financed from its operating cash flow, and the financial impact of this acquisition would be reflected in its next quarterly results.