Levant Capital, CVCI spend $100M on Saudi Chain
Investment funds advised by Levant Capital and Citi Venture Capital International took a $100 million joint controlling stake in Saudi Arabia-based supermarket chain al-Raya, they said in a joint statement on Wednesday.
February 22, 2012 1:03 by Reuters
“The transaction, valued at $100 million, presents an opportunity for Levant Capital and CVCI to capitalise on the growth in consumer-driven demand and the increasingly attractive middle income segment of the gulf region’s largest economy,” it said in a statement, adding that the deal closed on Tuesday.
Interest in Saudi Arabia’s consumer sector is growing among international investors as the country’s population rises beyond 27 million, most of which are under the age of 30.
Al-Raya operates 25 supermarkets across 14 cities in Saudi Arabia, with sales of 800 million riyals ($213 million) in 2011.
“The supermarket segment within the food retail sector is expected to grow faster than the overall market as consumers continue to migrate towards organised retail,” Salameh Sweis, Chief Executive Officer of Levant Capital said.
In December Coca-Cola Co said it will spend $980 million in Saudi Arabia-based beverage company Aujan Industries. The transaction is expected to close in the first half of this year. (Reporting by Asma Alsharif) *image taken by aaa786