Saudi food group eyes Ole bakery + Ibnsina breaks into hospitals with El Shorouk acquisition
Saudi food conglomerate Savola Group is close to acquiring the Egyptian Belgian Company — best known for its Ole-branded baked goods — in a transaction worth c. EGP 600 mn, a source familiar with the matter confirmed Enterprise. Hapi Journal had reported that the acquisition would see the company acquire both the manufacturer’s assets and its brand name. Our source was not able to confirm this or disclose an exact timeline for the acquisition.
This isn’t the first time Ole has been up for grabs: Edita Food Industries was interested in acquiring assets belonging to the company but talks fell through in January after the two sides failed to reach an agreement on valuation.
Savola has been eyeing acquisitions in Egypt’s food sector for a while: The company said last year that it is considering acquiring food companies in Egypt. Savola said at the time that it would target companies who produce items not covered by its existing portfolio.
Savola is already a big player in our market — even if it’s not a “household name”: The company is behind popular local cooking oil, ghee, pasta, and sugar brands including Rawabi ghee, Afia oils, and El Maleka and Italiano pastas. Its products are sold across the region, including in the Gulf, Sudan, and Turkey. Egypt accounted for about 17% of Savola’s revenues in 1Q 2022, according to the company’s investor presentation.
ADVISORS- Zilla Capital is acting as the Egyptian Belgian Company’s financial advisor, while Al Ahly Pharos is Savola’s financial advisor, our source confirmed.
OTHER M&A NEWS- Ibnsina Pharma is getting into the hospital business with the acquisition of El Shorouk Hospital in a transaction worth EGP 430 mn, the company said in a press release (pdf) yesterday. Ibnsina will pay EGP 200 mn in cash and will settle existing debts owed by the hospital. The statement does not make clear who the seller is. Company representatives did not respond to Enterprise’s request for comment.
What they’ve bought: Ibnsina will acquire the hospital’s real estate and operational assets, as well as the operating company. The 105-bed hospital serves residents across Shorouk City and neighboring Madinaty, Rehab, Badr City, New Cairo, and East Cairo.
What they said: “The rollout of the Universal Healthcare plan and the construction of new cities are behind our appetite for further investments in the healthcare sector. Population growth and having more people covered translates into higher demand for healthcare services,” said co-CEO Omar Abdel Gawad.
Looking ahead: Ibnsina will work on renovating the hospital and installing new equipment by the end of the year. The company has also hired a new team to manage the hospital, it said.