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Almarai pours cash (and milk!) into BakemartMENA

Almarai pours cash (and milk!) into Bakemart

Fresh out the oven: Almarai’s deal to buy the totality of Bakemart’s business operations in the UAE and Bahrain for AED 93.5m (about $25.5m). The agreement was fully financed from existing cash flow (looks like someone has deep pockets!) and we’ll be able to see its financial impact in Almirai’s next earnings reports.

As many of us know, Bakemart makes delicious bread and pastries for lots of hungry individuals and retail businesses in the region. So, it was an ideal acquisition target for Almarai, Saudi Arabia’s F&B giant, which was looking to expand into the baked goods industry.

why it matters
This past year ravaged the F&B industry and forced companies to cut costs by consolidating (recently, we reported that NADEC and Dava were discussing an acquisition too). On the other hand, given that this deal is cross-industry and cross-country, it's a step towards ensuring food security in the region too.