Almarai Acquires International Dairy and Juice for $68m in Successful

Almarai, a Saudi Arabian dairy company subsidiary, has finalized the acquisition of International Dairy and Juice Limited (IDJ), which was previously a partnership with PepsiCo in Jordan and Egypt.

On Sunday, Almarai Investment Holding announced that it had purchased PepsiCo's 48% share in IDJ, a company in which Almarai previously held a 52% stake. The deal was valued at 255 million Saudi riyals (equivalent to $68 million) and has resulted in Almarai now having full ownership of IDJ.

“The full ownership of IDJ will allow Almarai to further expand strategically in the wider region,” the company said.

Almarai stated that it will use its own internal cash flows to finance the purchase.

Before the deal, IDJ was a partnership between Almarai and PepsiCo, focusing on producing and distributing food and beverages in Jordan and Egypt. Additionally, the company had exported to different markets in other regions.

In response to challenges caused by the Covid-19 pandemic, food and beverage companies in the Middle East and North Africa region are considering acquisitions to drive growth, expand their product offerings, and increase their presence.

Almarai's recent investment is consistent with Saudi Arabia's objective of enhancing its food security, with support from private sector entities.