UAE - Almarai, the Saudi Arabian food giant, has strengthened its foothold in Jordan by acquiring Hammoudeh Food Industries through its subsidiary, Teeba Investment for Developed Food Processing. 

The deal, valued at US$70.1 million, grants Almarai complete ownership of Hammoudeh, a manufacturer engaged in food and beverage production, as well as agri-business and chemicals.

Founded in 2004, Teeba Investment is a subsidiary of International Dairy and Juice Limited, which has been under Almarai’s sole ownership since January 2023. 

The acquisition of Hammoudeh aligns with Almarai’s strategy of expanding its operations in Jordan through both new product launches and strategic acquisitions.

In the first nine months of 2024, Almarai reported a revenue increase to US$4.2 billion, indicating a year-on-year growth of 7.9%. 

The company's fresh poultry and dairy products were pivotal to this sales boost. Earlier in March 2024, Almarai announced a substantial US$4.8 billion investment plan over five years aimed at enhancing its core businesses and exploring opportunities in adjacent markets.

Despite already having a presence in the Jordanian market with dairy and baked goods, and launching its infant milk powder brand Nuralac in September 2024, Almarai’s primary markets remain Kuwait, Saudi Arabia, and the UAE. 

The acquisition of Hammoudeh Food Industries is expected to further accelerate Almarai's expansion in Jordan, leveraging Hammoudeh's deep understanding of local dairy and poultry sectors and its extensive agricultural land, which will aid in reducing production and transaction costs.

Founded in 1976 by Prince Sultan bin Mohammed bin Saud Al Kabeer, Almarai has experienced significant growth, reporting a 14% increase in total production volumes in 2023, reaching 209 million metric tons. This surge contributed to a 17% rise in overall revenue.

In terms of market share, Almarai commands a notable presence in the poultry sector, boasting an 87% market share in Kuwait, 34% in Saudi Arabia, and 19% in the UAE. 

In 2023 alone, the company generated approximately 3.52 billion Saudi Riyals (US$937.2 million) in poultry revenue from Saudi Arabia, with an additional 460 million Saudi Riyals (US$122.4 million) from other Gulf Cooperation Council (GCC) countries. 

This represents a significant year-on-year growth of 12.9% in poultry sales, translating into an increase of 100.2 million Saudi Riyals (US$26.7 million).