The transaction represents a major milestone for NADEC since its establishment in 1981 and a compelling value creation proposition for its shareholders. Key benefits are expected to include:
- Consolidating NADEC’s strong position in the dairy market in KSA, to create a national champion in accordance with Vision 2030 which aims to increase revenue in the private sector.
- The addition of a range of premium international licensed brands from Danone, the global dairy leader, including Activia, Danette and Actimel.
- NADEC will be strategically positioned to benefit from a large innovation pipeline of new products to support future growth.
- Enhancing NADEC’s regional reach in KSA, UAE, Kuwait, Bahrain, Jordan, and Lebanon as well as access to new geographies such as the high-growth Iraqi market via local manufacturing capabilities, Oman and other countries.
Commenting on the transaction, Eng. Abdulaziz Al Babtain, Managing Director of NADEC, said “We are delighted to announce this Transaction and believe it will better position NADEC by creating a strong player in the KSA dairy market and reinforcing its status as a leading regional dairy and beverage company. We were delighted to work with AS&H Law Firm in co-operation with Clifford Chance on this deal given their Saudi law expertise and knowledge of public transactions”.
AS&H Partner, Majid Al-Sheikh remarked: "We are delighted to have supported NADEC on such a strategic transaction, helping NADEC support future growth and development."
The team was led by Majid Al-Sheikh (AS&H Partner, Head of Corporate, Riyadh) supported by Daniel Royle (Clifford Chance Counsel seconded to AS&H), Basel Al-Hadidi (Clifford Chance Associate seconded to AS&H), Naif Alosaymi (AS&H Associate), Mais Alomar (AS&H Associate), Haifa Al-Damegh (AS&H Associate), Adnan Syed (Clifford Chance Associate seconded to AS&H) and Rizwan Butt (Clifford Chance Associate seconded to AS&H).
AS&H in co-operation with Clifford Chance regularly advises Saudi and international clients on their strategic transactions in the Kingdom of Saudi Arabia. It has also recently advised Cosumar on its first equity investment in the Kingdom in a greenfield sugar refinery project in Yanbu and Savola Group on Saudi Arabia's first accelerated book-built block trade.