Al Ghurair and Al Rajhi successfully complete the acquisition of the Third Milling Company Featured

[8 April 2021], Dubai, UAE: Al Ghurair Investment, Al Rajhi Holding Group and Masafi jointly announce the completion of the acquisition of a 100 percent stake in Third Milling Company (MC3) from Saudi Grains Organisation (SAGO) / National Center for Privatization and PPP (NCP).

The AlRajhi-AlGhurair-Masafi Consortium acquired MC3 following a competitive tender process led by SAGO and the National Center for Privatization and PPP (NCP), marking one of the first flour mill acquisitions in the Kingdom.

The flour milling sector represents one of the key sectors for full privatisation under Saudi Arabia's Vision 2030. The completion of the acquisition is a significant milestone in the country’s privatization agenda.

Commenting on the transaction, John Iossifidis, Group CEO, Al Ghurair Investment (AGI), stated: “The completion of the strategic acquisition of MC3 marks a milestone in the move towards the privatisation of crucial sectors by Saudi Arabia and aligns to AGI’s strategy to support governments as they seek to enhance food security throughout the region. We are grateful to NCP, SAGO and our consortium partners for their trust in our commitment to advancing the development of the grains sector.”

He added: “Al Ghurair Investment has a long and proud history in the flour sector, having established Dubai’s first milling company in 1976. We look forward to bringing this experience to Saudi Arabia and leveraging it to spur the growth and diversification of MC3. This investment builds on decades of sustainable growth aimed at enhancing the life of the communities in which we operate.”

Djamal Djouhri, CEO, Al Ghurair Foods, commented: “Monetising public assets is a key agenda item for governments across the Middle East, as is food security, as they seek to boost competitiveness, product diversity and operational efficiency.

He continued: “As a recognised pioneer in the regional flour industry, through the acquisition of MC3 we will employ our significant capabilities within the foods industry to ensure the company continues to develop and flourish. We will accelerate the pace of innovation in order to ensure quality and continued provision of flour, an essential foodstuff, in line with increasing demand. We are proud to have been entrusted with this opportunity to demonstrate our expertise in a new market.”

Commenting on the transaction, Esmail Al Sallom, Group Chief Investment Officer at Al Rajhi Holding Group said: “This is a historic and landmark transaction which is a major step towards the Kingdom’s vision to increase private sector participation in the Saudi Arabian economy. As one of the pioneers in the privatization landscape in the Kingdom of Saudi Arabia, Al Rajhi Holding Group aims to leverage on its PPP experience in the other sectors (including power and development, operation and maintenance of airports) and the knowledge of AGF in the food business, in order to improve operational efficiency and performance, drive new product development, enhance distribution networks, increase market penetration, and enrich the overall consumer experience.”

Saood Al Ghurair, CEO & Vice Chairman of Masafi, commented: “This successful undertaking accentuates the strategic efforts that the AlRajhi-AlGhurair-Masafi Consortium are mobilizing to create a more resilient local commodities sector. Masafi being the first bottled water company in the UAE and one of the leading in the region since 1977, we understand the importance and impact of forward-looking proactive initiatives to advance the strategic food security agenda. We applaud the combined efforts of the consortium and we believe that the collective knowledge will bring about a stronger sector amidst growing local demand.”

The Saudi Grains Organization will continue to oversee MC3 in its remit as the regulator of the milling sector and main importer and supplier of wheat, barley and other grains to the milling companies in the Kingdom.

Through a commitment to industry best practice, the Consortium will bring innovation and efficiency to benefit MC3 and, ultimately, consumers, while further supporting the development of the Saudi Arabian milling sector.  

About Al Ghurair Investment:

Al Ghurair Investment (AGI) aims to set the standard for family business groups in the Middle East. AGI is proud of its deep roots in the UAE, which trace back over six decades. Building on this enduring legacy, the Group has established diversified operations spanning more than 50 countries across the globe, employing approximately 28,000 people. Today, the Al Ghurair family name is synonymous with the development of the region and AGI builds on this long history of innovation and entrepreneurship through its operations in six distinct sectors including food, resources, properties, construction, energy and ventures.

From its modest beginnings as a local trading business, the investment Group continues to be guided by its purpose: ‘Enhancing Life’. In order to fulfil this, AGI is dedicated to the adoption and implementation of best practices in all areas of its business, including investment and governance, in order to enable and drive future prosperity and benefits for the communities within which it operates.

Al Ghurair Foods (AGF) is a regional leader in flour milling with over 40 years of milling experience - annual capacity of over 1.5mln MT and operational silos of over 230,000 MT across its wheat milling assets alone. Additionally, AGF and its associated Group entities also own and operates a variety of food production facilities including an oats mill, rice mill, poultry farm and animal feed plant, across geographies.

AGF operates state-of-the-art manufacturing facilities with a team of over 1,000 employees including milling, technical and functional experts ensuring sustained leadership position across the region.

About Al Rajhi Holding Group

Al Rajhi Holding Group (RHG) is a leading well-diversified, family-owned conglomerate based in Riyadh with business interests in manufacturing of petrochemicals, real estate, contracting, fabrics, building solutions, plastics and developing major infrastructure projects. As of December 2020, group’s workforce exceeded 12,000 employees.

RHG has extensive experience of local and regional concessions. RHG also has a strong group track record as Class A contractor, developer and operator of several PPP transactions and proven track record of successfully working together with international partners. RHG is currently actively participating in several privatization and PPP initiatives of the Kingdom of Saudi Arabia as part of Vision 2030.

RHG is also co-founder of ACWA Power; consortium member of Build-Transfer-Operate concession of Prince Mohammad Bin Abdulaziz Airport in Madinah.

About Masafi

Established in 1976 and headquartered in the UAE, Masafi Company is a leading producer of pure natural mineral water, fresh juices and juice drinks as well as world-class household products available in a growing number of countries across the Middle East and beyond. The historical roots of the company’s flagship product, Masafi bottled water, lie in natural springs beneath the scenic Hajar mountains in Ras Al Khaimah. A private venture of the Al Ghurair family, Masafi has been shaping the fast-moving consumer goods sector with its strong commitment to innovation and quality.

With state-of-the-art bottling and manufacturing facilities in the UAE and Oman and cutting-edge fleet and logistics systems, Masafi’s end-to-end business model places it in a prime position for further growth.