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Almarai Acquires Fondomonte For Feed

22 December 2011

SAUDI ARABIA - On Tuesday 20th December 2011, Almarai Company (‘Almarai’) acquired 100 per cent of the shareholding of Fondomonte Saudi Arabia, a company that owns and operates three farms in Argentina.

The transaction is in line with the direction of the Saudi Government towards securing supplies and conserving local resources and forms part of Almarai’s continuous efforts to improve our supply chain and ensure access to the highest quality feed for both dairy herds and poultry businesses.

The transaction value is SAR 312 million (approximately US$ 83 million) and is financed from a combination of operational cash flows and Islamic banking facilities (Murabaha).

Fondomonte S.A. is comprised of three arable farms totaling 12,306 hectares and is dedicated to the production of corn and soybean. The systems used are “state of the art” and the management team has consistently delivered above average performance.

This initiative forms another step in Almarai’s strategy of securing it’s supply of farm feed.

TheCattleSite News Desk



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