BinDawood acquires 51% stake in Wonder Bakery

Saudi Arabian grocery retailer BinDawood Holding (BDH) has acquired a 51 percent stake in Wonder Bakery, a UAE-based food company, for AED97 million ($23 million) to tap into the fast-growing bakery market.

The transaction will be funded by internal resources, according to a statement on the Tadawul exchange, where BDH’s shares trade.

Wonder Bakery, which was established in 2014, specialises in fresh and frozen products for the hospitality sector. It has a 62,000-square-feet facility in Dubai, producing up to 50,000 tonnes of bakery and kitchen products annually.

BDH also aims to establish and operate a manufacturing facility in Saudi Arabia, enabling the transfer of technical and operational know-how to the local market.

Wonder Bakery serves the GCC market and plans to expand globally soon, the statement said, without naming any target countries.

Further reading:

• Saudi Arabia among world’s most competitive delivery markets
• Saudi ecommerce boom spurs race to build logistics network
• UAE shoppers ready to spend, but retail outlook remains tough

Earlier this month, BDH announced the acquisition of 51 percent of Toy Triangle Company, a Saudi-based toy distribution business.

BinDawood shares were trading flat at SAR4.66 on Wednesday, having lost more than a quarter of their value since January 1.

The BinDawood family owns BDH, which has 80 hypermarkets and supermarkets in Saudi Arabia.