“Amar” signs an agreement to acquire the “Five Guys” franchise for 85 million riyals
Al-Amar Food Company announced that it has entered into a purchase and sale agreement to acquire 100% of the shares of Al-Shaghaf Al-Arabiya Limited Liability Company (also known as Cravia Arabia), which manages the Five Guys franchise.
The company said in a statement on its website "Saudi Arabia trading"The deal supports Al-Amar’s strategy to strengthen its position in the Kingdom of Saudi Arabia market by entering the burger sector, which is the largest category in the quick service restaurant market in the Kingdom, through the leading brand in the luxury burger sector (Five Guys).
This step represents a strategic move to expand Al-Amar’s multi-brand platform, take advantage of additional growth opportunities in a category with high potential, and strengthen its presence in one of its main markets.
Cravia Arabia operates without any bank obligations, and it is expected to reach adjusted profits before Interest, taxes, depreciation and amortization for the year 2025 is about 17 million Saudi riyals after applying International Financial Reporting Standard No. 16
Cravia is a Saudi limited liability company that owns the exclusive rights to franchise the Five Guys brand in the Kingdom of Saudi Arabia and operates 13 restaurants in the Kingdom.
According to the statement, the value of the deal is 85 million riyals, subject to some reductions based on the terms of the agreement. The final value will be disclosed after the completion of the deal.
She explained that the completion of the deal is conditional on obtaining the necessary regulatory approvals, securing the approval of the franchisor and other third parties, and fulfilling the preconditions stipulated in the agreement, in addition to the usual amendments upon closing.
She explained that financing the deal will be through internal resources and bank facilities compatible with Islamic Sharia.
She stated that the deal includes operating quick service restaurants for the leading brand Five. Jay’s has 13 locations in the Kingdom of Saudi Arabia.
It expects the positive financial impact to appear after the completion of the deal, after obtaining final regulatory approvals.
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