Almarai Co. — M&A Activity 2008

Dec 17, 2008

Almarai announces the acquisition of a 75% stake in Teeba

2280 · 17/12/2008 09:06:31 · Announcement #14127 · View on Saudi Exchange

Almarai announces the acquisition of a 75% stake in Teeba

Almarai Company (?Almarai?), through its subsidiary Almarai Holding Company W.L.L. (100% by Almarai), has entered into a definitive agreement on Tuesday 16 December 2008 to acquire 75% of Teeba Investment for Developed Food Processing Company PSC (?Teeba?) for cash consideration self financing. The remaining shares will be retained by the founders Khalil Family. The transaction was based on an enterprise value of JOD 89 million (SAR 474 million) for "100%" of the shares and is expected to close in January 2009, following the completion of standard transaction conditions. This acquisition, the first outside the Kingdom of Saudi Arabia, provides Almarai with a platform for future growth. This is an important strategic venture for the group in a market that is showing considerable growth. Leveraging Almarai capabilities through the platform offered by Teeba should allow Almarai to become the preferred choice in Jordan in a short time frame. This transaction will better enable Almarai to maintain its impressive growth and track record in delivering value for shareholders. Teeba is one the leading diary players in the Jordanian markets. The company was established in 2005. Teeba recently commissioned a new plant and launched a new line of products. We will keep you informed of developments.

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