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Abu Dhabi’s ADNH Catering said on Friday that it has entered into a sale and purchase agreement to acquire an additional 20 per cent equity share in its Saudi Joint Venture from Compass Group, which will increase its stake to 50 per cent.
Upon completion of the transaction, which is expected to occur in Q1 2025, ADNH Catering will hold the controlling stake in the JV, alongside Al-Rushaid Petroleum Investment Company, which will hold the remaining 50 per cent equity stake.
Founded in 2012, the Saudi Joint Venture will be rebranded as Compass following the completion of the transaction.
Abu Dhabi National Hotels (ADNH Group), the parent company of ADNH Catering, bought out Compass Group International in their UAE JV ADNH Compass, one of the UK’s Top 30 FTSE-listed businesses, in March.
“With the increase of our equity share in our Saudi Joint Venture, we are seeking to build out from our market-leading position in the UAE to expand ADNH Catering’s operations across various business segments and provinces in the kingdom, including Riyadh,” said Clive Cowley, CEO of ADNH Catering Group.
ADNH Group raised $235m (Dhs864m) from listing a 40 per cent stake in ADNH Catering on the Abu Dhabi Securities Exchange. The catering firm’s revenues reached $444m (Dhs1.63bn) in 2023, and it registered a profit of Dhs422.5m during the period under review.
Read: ADNH Catering eyes serving up Dhs864m in IPO offering
