Subsidiary of International Holding Company plans expansion of Royal Horizon after buying 60% stake
A subsidiary of Abu Dhabi-listed International Holding Company said on Wednesday it has acquired 60 percent of Royal Horizon Holding, a supplier of soft commodities to government and private sector buyers in the UAE.
Zee Stores said it plans to expand the retail footprint of Royal Horizon following the acquisition, worth AED80 million ($21 million), divided into AED40 million payable to shareholders and AED40 million as a capital infusion.
Founded in 2008, Royal Horizon and its associated companies – Overseas Foodstuff Trading and Royal Horizon Fazaa Stores – carry a portfolio of over 6,000 food and retail products.
It operates a total 43,000 sq ft of retail space in Ajman, Rak and Al Ain and is one of the major rice distributors in the UAE, providing more than 21000 metric tons during last three years.
It is also one of the most preferred dry food supplying partners of government departments such as the Ministry of Interior, Armed Forces, Municipalities and 18 private labelled items of Royal Horizon Holding are widely available in the wholesale and retail market.
As of December 2020, it had total assets of AED68 million and annual turnover of AED123 million.
Falal Ameen, CEO of Zee Stores, said: “The majority acquisition of Royal Horizon gives us an immediate entry into the retail food space, with stores in Ajman, RAK and Al Ain and a medium-term strategy of opening four more stores by 2025.
“We are also adding internationally recognised brands to our own growing rooster of soft commodities and there will be numerous synergies in supply chain management that will give our earnings and profits a considerable long-term boost.”
Suhail Nekhaira Aida Suhail Al Efari, chairman at Royal Horizon, added: “Royal Horizon has enjoyed considerable success in the UAE since 2008 and the majority acquisition by Zee Stores will support our expansion strategy, and gives us further reach for our products with their growing customer base.”
Zee Stores operates as a food and distribution company and was listed on the ADX Second Market in December.
