Abu Dhabi-listed International Holding Company’s listed subsidiary, Zee Stores, a specialist in trading food and non-food products and other services, has acquired 60% of privately-held Royal Horizon Holding, a leading supplier of soft commodities.
The acquisition is worth AED80 million ($21 million), divided into AED40 million payable to shareholders and AED40 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 4 more stores by 2025 and affording us over 138,000 sq ft of retail space for our combined 25,000+ 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 Aida Suhail Al Efari, 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 Royal Horizon Fazaa Stores carry a portfolio of over 6,000 food and retail products. A total 43,000 sq ft of retail space currently covers three locations namely, Ajman, Rak and Al Ain. Being one of the major rice distributors in the UAE, it has provided more than 21000 MT supply of rice during last three years. It is one of the most preferred dry food supplying partners of government departments such as the Ministry of Interior, Armed Forces, Municipalities etc.
18 private labelled items of Royal Horizon Holding are widely accepted in the wholesale and retail market. As of December 2020, it has total assets of AED68 million and annual turnover of AED123 million.-- Tradearabia News Service