Synergy Consulting was the buy-side advisor to shareholders of Raha Al Safi Company (RASC), that acquired the First Milling Company (MC-1) as part of phase-1 of flour mills privatization by the Saudi Grains Organization and the National Center for Privatization, Saudi Arabia. Privatization of flour milling sector is in line with the objectives of Vision 2030 and expected to develop local market, improve operational efficiency, introduce new high-quality flour products and improve service standards.
MC-1, the biggest of four milling companies, was acquired for an initial price of USD 540 million (SAR 2.03 billion). RASC comprises of Al Mutlaq Group, Al Safi Holding Co., Abunayyan Trading Co., and Essa Al-Ghurair Investments. The share purchase agreement was signed in September and financial close was achieved in December. Synergy led the bid preparation with the client and raised financing (debt and equity) for the transaction to cover purchase price and further investment. We were supported by an advisory team that included Covington & Burling LLP, Canaccord Genuity, Alix Partners and Ashurst LLP.
The acquisition is the first asset sale in one of the largest flour and animal feed markets in the MENA region; we are pleased and proud to have worked on this landmark transaction. Read more here.