Kazyon Limited, the UK-based parent company of Kazyon, has acquired 50% equity share capital in Saudi Arabian grocery retailer Al Dukan for SR250m ($66m).
The strategic move is part of Kazyon’s growth plans and marks its expansion into Saudi Arabia, its third market after Egypt and Morocco.
Dukan, founded in 2013, operates more than 100 stores across three cities within Makkah province and employs 500 people.
The retailer is known for offering a wide range of basic groceries and a variety of private-label products at discounted prices, catering to 50,000 customers daily.
The acquisition was executed through a capital increase, which will enable the invested capital to be used to accelerate Dukan’s store expansion.
Kazyon, which was established in 2014 by Hassan Heikal, is one of the leading discount grocery retailers in the Arab world and Africa, with a network of more than 1,000 stores.
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The retailer plans to grow to more than 5,000 stores in the five years to 2028 across Saudi Arabia, Egypt and Morocco.
The expansion will be supported by its proprietary logistics capabilities, which include its distribution centres, a fleet of transport vehicles and stores.
Kazyon chair and founder Hassan Heikal stated: “This acquisition marks an important milestone for Kazyon as it accelerates its growth and expands into Saudi Arabia, one of the most attractive grocery retail markets in the region.
“We are excited by the prospects for the business in the kingdom. The transaction was funded by introducing to the capital structure of Kazyon a global sovereign wealth fund as we solidify our position as a leading grocery retailer in the region.”
Evercore Partners, EFG-Hermes, White & Case and PWC acted as the advisors for Kazyon during the transaction.