Tamimi Markets Company (“Tamimi”) announced the successful completion of its acquisition of 100% of Al Raya For Food Stuffs Company JSC (“Al Raya”), a prominent supermarket chain operating across the western region of the Kingdom of Saudi Arabia. This acquisition is a strategic move in line with Tamimi Markets’ national growth strategy and serves to bolster its presence in the Western region.
The integration of Al Raya into Tamimi Markets signifies a significant step forward for both companies, aiming to harness their combined strengths while catering to new customers across multiple markets. Bobby Rajendran, CEO of Tamimi Markets, expressed his optimism about the collaboration, stating, “The Al Raya brand is widely recognized for its neighbourhood convenience and fresh offerings, particularly its exceptional bakery. We are excited to enhance the Al Raya brand’s value and efficiency while supporting its continuous expansion.”
Al Raya’s extensive network of 51 supermarkets across the western region seamlessly complements Tamimi Markets’ existing geographic footprint. This acquisition underscores Tamimi’s unwavering commitment to delivering exceptional products and services to its growing customer base.
Established in 1991 with its flagship store in Jeddah, Al Raya has emerged as a leading regional supermarket chain, boasting 51 supermarkets spread across more than 20 cities in the Northwest, West, and Southwest of Saudi Arabia. Following Levant Capital’s acquisition of a 75% stake in Al Raya in 2012, the Company witnessed substantial growth, doubling its store count from 23 to 51 and expanding its sales area by 2.5 times.
Tamimi Markets, a Saudi family-owned supermarket business founded in 1979, currently operates 109 stores. With the Tamimi family at its helm, the company is on an ambitious growth trajectory across the region. The addition of Al Raya further strengthens Tamimi’s presence and capabilities in its western operations, propelling its national expansion efforts.
Levant Capital, an independent financial services firm with a focus on private market investments, facilitated the institutionalization and growth of Al Raya during its investment period. Notably, Levant Capital has a track record of successful investments in the consumer sector, including the exits from Bayara Group to Savola Foods in 2021 and Panço Kids to Kuzu Group in 2022.
anb capital served as Tamimi’s exclusive financial advisor for this transaction, with the Law Office of Mohanned bin Saud Al-Rasheed in Association with Baker Botts L.L.P. acting as its legal counsel. BNP Paribas acted as the sole financial advisor to Al Raya, with Eversheds Sutherland providing legal advisory services to the shareholders of Al Raya.
