Olayan Financing Company (OFC) has bought 51% stake in juice and beverage manufacturing firm Gulf Union Foods (GUFC) from a group of investors including Jadwa Investment.
As part of the transaction, Jadwa has divested 30% stake in Gulf Union Foods that was owned by its Food and Beverage Opportunity Fund.
To date, OFC has invested in several joint ventures with various local and multinational companies over the years.
Gulf Union Foods founding shareholder and chairman Sulaiman Salih Al Rashoudi said that the Jadwa team provided world-class advice for the company's various strategic and business initiatives and enabled it to pursue significant growth opportunities.
"At the same time, I am delighted to welcome OFC as our majority shareholder, and I look forward to working with them to continue building on GUFC's success," added Al Rashoudi.
Jadwa Investment managing director and CEO Tariq Al Sudairy said, "During our holding period, GUFC experienced strong financial performance, registering a compound annual growth rate of 22% in revenues and 14% in net income. We are proud of our partnership with GUFC and wish their shareholders and management team continued success with OFC."
The financial terms of the transaction are not disclosed.
Gulf Union Foods currently offers juice, nectar, still drinks and floats through nine brands. It has 12 production lines and 1200 dedicated staff.
