Company to acquire 10 international food & beverage franchise brands at over 200 locations
Leading Saudi Arabian-based fashion franchise retailer Fawaz Abdulaziz Alhokair & Co. has announced that it will acquire the Saudi Arabia franchise rights for 10 profitable international food and beverage brands from Food and Entertainment Company.
The deal will see an exchange of non-core receivables valued at SAR 340mn (US$ 90.65mn) with the current operator. Fawaz Abdulaziz Al Hokair & Co. will not make any cash payment for the transaction.
The agreement requires that Food & Entertainment Company will be liable to compensate Fawaz Abdulaziz Alhokair & Co. if the financials of Innovative Union Company fall short of the established 2020 projections.
This acquisition reinforces the company’s vision to create a stronger and more impactful ‘Shoppertainment” experience with over 10 F&B brands and 200 locations in Saudi Arabia. Growth will be focused on targeted Quick Service Restaurant (QSR) businesses such as Cinnabon with high margins. These types of businesses can expand quickly with lower capital investment, and maintain a higher return on investment
“This exciting transaction marks our company’s successful expansion into the food and beverage sector. The acquisition gives us a Kingdom-wide portfolio of strong brands that cover a wide range of tastes and products and fast-growing challenger brands with significant growth potential,” said CEO Marwan Moukarzel.
In a related move, Peter King recently joined as CEO, Food for Innovation Union Company, to help steer the operational transition to Fawaz Abdulaziz Alhokair & Co. and streamline the integration of the two brand powerhouses. In the past King has held executive positions with Krispy Kreme and Starbucks Coffee Company.
