Al Ghurair Investment, the leading diversified UAE family business, recently announced the signing of a share purchase agreement to acquire a 100 percent stake in Edible Oil Company LLC, one of the leading multi-seed crushing plants in the Middle East, from Dubai Investments Industries (DII).
The signing of this agreement is a pivotal step in Al Ghurair Investment’s commitment to expanding its Al Ghurair Foods and Resources business, in order to support and advance the food security agenda within the UAE and wider region. Al Ghurair Investment (AGI) has been working in partnership with the Edible Oil Company LLC (EOCD) for over a decade.
Utilising state-of-the-art machinery and technology, the EOCD plant has a capacity to crush up to 2,200 metric tonnes of soya bean seeds, 1,300 metric tonnes of canola seeds, and 1,000 metric tonnes of sunflower seeds per day, this purchase will significantly extend Al Ghurair Foods’ overall portfolio size and production capacity.
Commenting on the acquisition, John Iossifidis, Group Chief Executive Officer at Al Ghurair Investment, stated: “The milestone strategic acquisition of the Edible Oil Company underpins AGI’s commitment to enhancing life in the communities in which we operate, facilitating regional food supply. Moreover, it further cements our position as a leading player in supporting food security across the MENA region. Following a decade of success in co-operation with EOCD, now is the opportune moment for us to acquire this thriving business to augment our existing resources portfolio, as we prepare for our next phase of growth.”
Djamal Djouhri, Chief Executive Officer at Al Ghurair Foods, commented: “Ensuring the efficiency of the food supply chain is a critical area of strategic focus for local and regional governments as they seek to boost competitiveness, enhance product diversity and optimise operational efficiency. As a UAE family business, we are committed to supporting the country’s leadership in its vision to achieve sustainable, secure supply chains and to elevate standards across the regional food community. After a successful 10-year partnership with EOCD, I am proud that we have consistently demonstrated our capability and commitment to excellence, which has led to the forging of this agreement. We are now primed to accelerate the growth of our foods business, strengthen our leadership position and explore opportunities in new markets.”
Mohammed Saeed Al Raqbani, General Manager, Dubai Investments Industries (DII), added: “Dubai Investment Industries will continue to pursue investments across strategic projects aimed at not only diversifying the business portfolio but also increasing the contribution to the non-oil industrial sector. Over the years, our partnership with AGI has successfully elevated EOCD’s position within the food industry and given the synergy of their business, the time was now right for EOCD to benefit from AGI’s expertise and strengths within the sector. We are optimistic this divestment will channelize a new growth curve for EOCD.”
Sreekumar Brahmanandan, Director of operations, Dubai Investment Industries (DII) who leads the divestment process further added: “Over the past 10 years, Dubai Investment Industries has focused on re-engineering the cost of operations, investing in plant development to process multiple vegetable seeds to meet changing market conditions and demands. We are proud that this strategic asset has added significant value to UAE’s economy over the last decade. Our historic partnership with AGI added further strength via shared synergies, and has ultimately culminated in this divestment.”
Al Ghurair Investment strives to adopt and implement best practice in investing and governance, which will further benefit EOCD’s growth strategy. Through its seven focus sectors, food, resources, properties, construction, energy, mobility and ventures, the Group has established diversified operations that are focused on enhancing life for the communities in which it operates.
