EFG Hermes, the leading investment bank in the Middle East and North Africa (MENA) and a subsidiary of EFG Holding Company, has announced the successful completion of its advisory role in a merger and acquisition (M&A) deal involving Cenomi Retail, the largest franchise retailer in Saudi Arabia. According to the agreement, Cenomi Retail has agreed to sell a selected portfolio of brands to Abdullah Al-Othaim Fashion Company, a fully owned subsidiary of Abdullah Al-Othaim Investment Company.
As part of the deal, Cenomi Retail reached a definitive share purchase agreement with Abdullah Al-Othaim Fashion Company in December 2023. The agreement involved the acquisition of 100 percent of the share capital of Innovative Outfit Trading Company, a subsidiary of Cenomi Retail responsible for holding the franchise rights for the 16 brands included in the transaction. The deal was finalized in February 2024 after obtaining the necessary approvals and fulfilling the agreed-upon commercial and regulatory conditions.
Abdullah Silsilah, director of Investment Banking at EFG Hermes, expressed immense pride in the successful execution of this transaction. According to him, this deal marks EFG Hermes’ second transaction in the retail sector of Saudi Arabia in 2024, demonstrating the bank’s commitment to expanding its presence in the country and highlighting the vast potential across various sectors.
The transaction represents a significant milestone in Cenomi Retail’s ongoing transformation program, aligning with its strategy to focus on Champion brands within the Fashion, Electronics, and Food & Beverage categories.
EFG Hermes acted as the sell-side advisor to Cenomi Retail for this transaction, while legal advisory services were provided by Clyde & Co for Cenomi Retail and Latham & Watkins for Al Othaim.
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