ADNH Catering signs sale & purchase agreement to increase stake in Compass Arabia

UAE – The largest catering service provider in the UAE, ADNH Catering PLC has signed a Sale and Purchase Agreement to increase its equity stake in the Saudi joint venture, Compass Arabia, to a controlling 50%.

Under the terms of the Share Purchase Agreement (SPA), ADNH Catering Group, through its subsidiary ADNH Catering, will acquire an additional 20% equity stake in its Saudi Joint Venture, increasing its ownership from 30% to 50%.

The remaining 50% stake will be retained by Al Rushaid Group. The joint venture is set to undergo rebranding upon completion of the transaction, which is anticipated in the first quarter of 2025.

Simultaneously, ADNH Catering PLC, through its subsidiary, has entered into a shareholder agreement with Al Rushaid Group.

Under this agreement, ADNH Catering will manage and control the operations of the joint venture.

Consequently, the financial position and results of the joint venture will be consolidated into ADNH Catering’s financial statements following the transaction’s completion.

Saudi Arabia’s strong macroeconomic growth continues to position the country as a strategic market for ADNH Catering Group.

Expanding operations in the Kingdom aligns with the company’s core strategy. The joint venture currently focuses on food services, supplemented by support services.

ADNH Catering Group has identified Riyadh, the Kingdom’s largest and fastest-growing city, along with the high-growth private healthcare sector, as significant opportunities for enhancing its market share.

Established in 2012, the Saudi Joint Venture has demonstrated consistent growth, with the number of clients served increasing by 17% between September 2021 and September 2023.

Building on this success, ADNH Catering Group aims to leverage its expertise, extensive experience, strong client base, and proven track record in the UAE to expand across diverse business segments and regions in Saudi Arabia, including Riyadh.

Clive Cowley, CEO of ADNH Catering Group, described the development as a significant milestone.

He stated that the move aligns with the company’s strategic vision outlined during its IPO in October 2024. By increasing its equity in the Saudi Joint Venture, the company seeks to strengthen its market-leading position in the UAE and drive growth across Saudi Arabia’s expanding business landscape.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.