Al Ghurair Investment announcesacquisition of Dubai-basedEdible Oil Company
29June 2021, Dubai, UAE:Al Ghurair Investment, the leading diversified UAE family business, today announced the signing of a share purchase agreement to acquire a 100 percent stake in Edible Oil Company LLC, one of the leading multi-seed crushing plants in the Middle East, from Dubai Investments Industries (DII).
The signing of this agreement is a pivotal step in Al Ghurair Investment’s commitment to expanding its Al Ghurair Foods and Resources business, in order to support and advance the food security agenda within the UAE and wider region.
Utilising state-of-the-art machinery and technology, the EOCD plant has a capacity to crush up to 2,200 metric tonnes of soya bean seeds, 1,300 metric tonnes of canola seeds, and 1,000 metric tonnes of sunflower seeds per day, this purchase will significantly extend Al Ghurair Foods’ overall portfolio size and production capacity.
Commenting on the acquisition, John Iossifidis, Group Chief Executive Officer at Al Ghurair Investment, stated: “The milestone strategic acquisition of the Edible Oil Company underpins AGI’s commitment to enhancing life in the communities in which we operate, facilitating regional food supply. Moreover, it further cements our position as a leading playerin supporting food security acrossthe MENA region. Following a decade of success in co-operation withEOCD, now is the opportune moment for us to acquirethis thriving business to augment our existing resources portfolio, as we prepare for our next phase of growth.”
Djamal Djouhri, Chief Executive Officer at Al Ghurair Foods, commented: “Ensuring the efficiency of the food supply chain is a critical area of strategic focus for localand regional governments as they seek to boost competitiveness,enhanceproduct diversity and optimise operational efficiency. As a UAE family business, we are committed to supporting the country’s leadership in its vision to achieve sustainable, secure supply chains and to elevate standards across the regional food community. After a successful 10-year partnership with EOCD, I am proud that we have consistently demonstrated our capability and commitment to excellence, which has led to the forging of this agreement. We are now primed to accelerate the growth of our foods business, strengthen our leadership position and explore opportunities in new markets.”
Mohammed Saeed Al Raqbani, General Manager,Dubai Investments Industries (DII), added: “Dubai Investment Industries will continue to pursue investments across strategic projects aimed at not only diversifying the business portfolio but also increasing the contribution to the non-oil industrial sector. Over the years, our partnership with AGI has successfully elevated EOCD’s position within the food industry and given the synergy of their business, the time was now right for EOCD to benefit from AGI’s expertise and strengths within the sector. We are optimistic this divestment will channelize a new growth curve for EOCD.”
Sreekumar Brahmanandan, Director of operations, Dubai Investment Industries (DII)who leads the divestment process further added:“Over the past 10 years, Dubai Investment Industries has focused on re-engineering the cost of operations,investing in plant development to process multiple vegetable seeds to meet changing market conditions and demands. We are proud that this strategic asset has added significant value to UAE’s economy over the last decade. Our historic partnership with AGI added further strength via shared synergies, and has ultimately culminated in this divestment.”
Al Ghurair Investment strives to adopt and implement best practice in investing and governance, which will further benefit EOCD’s growth strategy. Through its seven focus sectors, food, resources, properties, construction, energy, mobility and ventures, the Group has established diversified operations that are focused on enhancing life for the communities in which it operates.
About Al Ghurair Investment:
Al Ghurair Investment (AGI) aims to set the standard for family business groups in the Middle East. AGI is proud of its deep roots in the UAE,which trace back over six decades. Building on this enduring legacy, the Group has establisheddiversified operations spanning more than 50 countries across the globe, employing approximately 28,000 people. Today, the Al Ghurair family name is synonymous with the development of the region and AGI builds on this long history of innovation and entrepreneurship through its operations in seven distinct sectors including food, resources, properties, construction, energy, mobility and ventures.
From its modest beginnings as a local trading business, the investment Group continues to be guided by its purpose: ‘Enhancing Life’. In order to fulfil this, AGI is dedicated to the adoption and implementation of best practices in all areas of its business, including investment and governance, in order to enable and drive future prosperity and benefits for the communities within which it operates.
Al Ghurair Foods (AGF) is a regional leader in flour milling with over 40 years of milling experience – annual capacity of over 1.5mln MT and operational silos of over 230,000 MT across its wheat milling assets alone. Additionally, AGF and its associated Group entities also own and operates a variety of food production facilities including an oats mill, rice mill, poultry farm and animal feed plant, across geographies.
AGF operates state-of-the-art manufacturing facilities with a team of over 1,000 employees including milling, technical and functional experts ensuring sustained leadership position across the region.
About Dubai Investments Industries
Dubai Investments Industries (DII), a wholly owned subsidiary of Dubai Investments, identifies and develops growth prospects within diverse industries in local and regional markets. Dubai Investments Industries was set up in 2005 to service the wide-ranging needs of the burgeoning industrial portfolio under Dubai Investments (DI). The Company follows a dynamic partnership strategy with industry leaders that possess the capacity and technical know-how to effectively manage greenfield investment opportunities. In forging such synergies, DII aims to deliver sustainable growth and generate significant returns. Please visit: www.di-industries.com to know more.