Abu Dhabi, UAE; X January 2021: Abu Dhabi-listed International Holdings Company’s (ADX: IHC) listed subsidiary, Zee Stores P.J.S.C. (ADX: ZS), a specialist in trading food and non-food products and other services, has acquired 60% of privately-held Royal Horizon Holding LLC, a leading supplier of soft commodities to government and private sector buyers in the UAE.
The acquisition is worth AED 80 million ($21m), divided into AED 40 million payable to shareholders and AED 40 million as a capital infusion to Royal Horizon.
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 [x] more stores by 2025 and affording us over [x] sq/f of retail space for our combined [x] food and retail products. 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, Chairman at Royal Horizon, commented: “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.”
Founded in 2008, Royal Horizon and its associated companies Overseas Foodstuff Trading and Fazaa Stores trade a portfolio of over 6,000 food and retail products. [Add further information].
Zee Stores was founded in 2002 and currently operates as a retail subsidiary under the International Holding Company (IHC) Abu Dhabi. The company specializes in trading food and non-food products, including importing, re-packaging, wrapping, storing, and distributing dry, canned, chilled, frozen, processed and fresh food products; household items, stationery, disposables and cosmetics; and chemicals and other allied on- and off-shore oil and gas field services. Zee Stores has assets of AED 189 million as at the end of September 2020 and its annual turnover is around AED 300 million. The company was listed on the ADX Second Market in December 2020.
IHC was founded in 1998, as part of an initiative to diversify and grow non-oil business sectors in the UAE. Adhering to ‘Abu Dhabi’s Vision 2030’, the ADX listed company endeavours to implement sustainability, innovation, and economic diversification initiatives across what is now one of the region’s largest conglomerates.
IHC has a clear objective of enhancing its portfolio through acquisitions, strategic investments, and business combinations. Comprising more than 30 entities, IHC seeks to expand and diversify its holdings across a growing number of sectors, including Real Estate, Agriculture, Healthcare, Food and Beverage, Utilities, Industries, IT and Communications, Retail and Leisure, and Capital.
With a core strategy to enhance shareholder value and achieve growth, IHC drives operational synergies and maximizes cost efficiencies across all verticals – it also continues to evaluate investment opportunities through direct ownership and entering partnerships in the UAE and abroad. As the world changes, and new opportunities arise, IHC remains focused on resilience, innovation and redefining the marketplace for itself, its clients and its partners.
