Kazyon Expands Presence in Saudi Arabia with Acquisition of 50% Stake in Dukan, Facilitated by EFG Hermes

EFG Hermes Demonstrates Expertise in M&A Advisory with Strategic Transaction in MENA Retail Sector

In a significant move signaling its expansion into the Saudi market, Egypt-based discount supermarket chain Kazyon has acquired a 50% stake in Dukan, a leading convenience retail grocery company headquartered in Saudi Arabia. Facilitated by EFG Hermes, a prominent investment bank operating in frontier and emerging markets, the transaction underscores Kazyon’s strategic vision and EFG Hermes’ expertise in facilitating transformative mergers and acquisitions in the region.

Founded in 2014, Kazyon has established itself as a key player in the regional discount retail sector, boasting over 1,000 stores across Egypt and Morocco. With a commitment to providing affordable essentials to millions of customers, Kazyon’s expansion into the Saudi market reflects its dedication to further growth and market penetration.

On the other hand, Dukan, founded in 2013 by the Al Dabbagh Group, has carved a niche for itself in the Saudi retail landscape with over 100 stores spanning Jeddah, Makkah, and Al Taif, and plans for further expansion into Riyadh. Dukan’s product offerings include a comprehensive range of discounted basic groceries alongside private label and exclusive brand products, catering to the diverse needs of consumers.

The acquisition, facilitated by EFG Hermes’ investment banking division, marks a strategic partnership between Kazyon and Dukan, with the remaining 50% stake in Dukan retained by its existing shareholder, the Al Dabbagh Group. Karim Galal, Managing Director at EFG Hermes’ investment banking division, emphasized the significance of the transaction, stating, “This deal aligns seamlessly with our strategic objective of expanding our presence in Saudi Arabia and highlighting the Kingdom’s immense investment potential across diverse sectors.”

Galal further highlighted the longstanding relationship between EFG Hermes and Kazyon, citing a previous collaboration in 2014 when EFG Hermes advised on Kazyon’s successful capital raise/private placement of US$76.5 million. The transaction underscores EFG Hermes’ trusted capability to lead transformative transactions, solidifying its position as the premier advisory house in the region.

The deal between Kazyon and Dukan is just one of many M&A advisories conducted by EFG Hermes in the MENA region, reflecting the investment bank’s robust track record and expertise in facilitating strategic transactions. Additionally, EFG Hermes has advised on seven initial public offerings (IPOs) within the region in the past year, particularly focusing on opportunities within Saudi Arabia’s dynamic market.

As Kazyon expands its footprint in Saudi Arabia and Dukan continues its growth trajectory under new ownership, the transaction signifies a strategic alignment of market interests and underscores the resilience and potential of the MENA retail sector. With EFG Hermes at the helm, facilitating transformative transactions, the collaboration between Kazyon and Dukan is poised to unlock new opportunities and drive value for stakeholders in the evolving retail landscape.

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