Investcorp partners with the Bindawood family and acquires a minority stake

24 Jan 2016

Investcorp, a global provider and manager of alternative investment products, today announced that it has acquired a minority stake in one of Saudi Arabia’s leading supermarket and hypermarket groups, Bindawood Holding (“Bindawood” or the “Group”).

Since its inception over 50 years ago, Bindawood has grown from a small trading business to one of the leading retailers in Saudi Arabia. The Group manages two key brands – Bindawood and Danube – across 40 hypermarkets and supermarkets in major Saudi Arabian cities, including Makkah, Medina, Jeddah, Riyadh and Khobar. Today, the Group employs more than 7,000 people.

The Bindawood brand is focused on the mid-range customer segment and the pilgrims in the holy cities. Meanwhile, Danube appeals to higher-end customers by stocking higher-price point products. 

Bindawood Holding has a strategic plan to expand its business aggressively across different cities in the Kingdom. It plans to open more than 30 hypermarkets and supermarkets in the coming years under the banner of Bindawood and Danube.

Mohammed Al-Shroogi, Investcorp’s Co-CEO, commented: “Saudi Arabia is a key market for Investcorp where we are continuously looking for interesting investment opportunities. We are very excited about this partnership with Bindawood Holding, a Group that offers an exceptional product in a Saudi Arabian grocery retail market that is currently worth around US$45 billion and expected to grow at a compounded annual growth rate of 11% over the next four years. There is an exceptional management team in place at Bindawood Holding and I am looking forward to working with them to accelerate the Company’s growth. We are privileged and honoured with this partnership, which I have no doubt will be successful.”

Dr. Abdulrazzaq Bindawood, Chairman of the Board of Bindawood Holding, said, “Investcorp brings valuable expertise to help us structure our growth across Saudi Arabia and institutionalize the Company. We spent a long time evaluating the options available to us and we are looking forward to beginning this new chapter in our history with Investcorp as our partner.”

Yasser Bajsair, Managing Director at Investcorp in the Kingdom of Saudi Arabia, said, “Consumer spending in Saudi Arabia has strongly benefited from economic and population growth over the last five years. This trend is expected to continue going forward, and we believe that the Company is ideally positioned to capture this growth. There is a very strong management team in place and we are eager to lend our expertise to help bring this exciting brand to even more consumers across the Kingdom.”

Bindawood Holding becomes Investcorp’s sixth portfolio company in Saudi Arabia and follows the Firm’s acquisition in July 2015 of a majority stake in NDT Corrosion Control Services, Saudi Arabia’s largest industrial testing services company. Investcorp’s other investments in Saudi Arabia include Leejam, the owner and operator of the leading fitness chain “Fitness Time”; Theeb, the leading car rental business; Al Yusr Industrial Contracting Company (AYTB), a leading provider of industrial services outsourcing solutions; and L’azurde, a leading designer, manufacturer and distributor of gold jewellery.