- Market Entry and Acquisition: Kazyon Limited, the UK-based parent company of Kazyon, has successfully acquired a 50% equity stake in Dukan for USD66.6 million, signaling its entry into the lucrative Saudi Arabian grocery retail market, valued at approximately USD 40 billion annually.
- Expansion Strategy: Dukan, established in 2013 and operating over 100 stores, is the exclusive discount grocery retailer in Saudi Arabia. The acquisition, executed through a capital increase, aims to accelerate Dukan’s expansion efforts amidst a market with significant growth potential, where modern trade channel penetration stands at approximately 50%.
- Strategic Growth Vision: Founded in 2014 by Hassan Heikal, Kazyon has rapidly evolved into the leading discount grocery retailer across the Arab world and Africa, boasting a presence in over 1,000 stores.
Kazyon Limited, the UK-based parent company of Kazyon, has finalized the acquisition of a 50% equity stake in Dukan for USD66.6 million, according to media reports.
The Saudi Arabian market boasts the largest grocery retail market in the region with an annual turnover of approximately USD 40 billion.
The investment in Dukan aligns with Kazyon’s growth strategy and facilitates establishing a diversified regional platform. Dukan’s strategy is to disrupt traditional modern trade operational models and capture market share from conventional trade channels.
Established in 2013 and operating more than 100 stores, Dukan stands as the sole grocery discount retailer in Saudi Arabia. The acquisition, executed through a capital increase, aims to expedite Dukan’s store expansion efforts.
Since its inception in 2014 by Hassan Heikal, Kazyon aspires to secure a top-three position in Saudi Arabia and Morocco following its status as a grocery retailer in Egypt.
Over the next five years, Kazyon plans to expand its network to over 5,000 stores across Saudi Arabia, Egypt, and Morocco, leveraging its proprietary end-to-end logistics capabilities encompassing distribution centers, transportation fleets, and retail outlets.
Kazyon Limited counts a global sovereign wealth fund, major development finance institutions (DFIs), key emerging markets private equity firms (including Development Partners International, FIM Capital, and Sango Capital), and regional family offices among its stakeholders.
Hassan Heikal, Chairman and Founder of Kazyon, commented: “This acquisition represents a significant milestone for Kazyon as it accelerates its expansion and ventures into Saudi Arabia, a highly attractive market for grocery retail in the region.
“We are optimistic about the business prospects in the Kingdom. The transaction was financed by introducing a global sovereign wealth fund into Kazyon’s capital structure, further solidifying our position as a prominent regional grocery retailer,” Heikal added.
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