The Abraaj Group and TPG invest in leading Saudi restaurant group, Kudu
SAUDI ARABIA. The Abraaj Group (“Abraaj” or “the Group”), a leading investor operating in global growth markets, and TPG, a leading global private investment firm, today announced the completion of an investment into Kudu, a Saudi Arabian restaurant group with multiple sites and brands across the country.
The Sharia-compliant debt investment made by an Abraaj-managed Fund and TPG, through a jointly owned vehicle, will allow the company to enter the next stage of its expansion and continue to set the benchmark for fast food retailing in Saudi Arabia.
Under the leadership of Engineer Abdulmohsen Al Yahya and Engineer Saleh Al Saleh, Founding Chief Executive Officer and Founding Chief Administrative Officer, respectively, Kudu emerged as a leading brand in Saudi Arabia.
By identifying consumer trends and tastes and focusing on best in class operations, Engineers Al Yahya and Al Saleh built Kudu into a vertically integrated consumer food service company with a presence in the QSR, fast casual, casual dining and coffee shop/café segments across Saudi Arabia via a portfolio of five brands and over 290 outlets.
The company’s flagship brand, Kudu, is the largest QSR network in Saudi Arabia by store numbers and is well-known for its variety of cooked to order sandwiches, hamburgers, breakfast items, kids’ meals and a variety of side orders and other fast food items and beverages.
Conducting the meal preparation process in clear view of the customer is a key component of Kudu’s appeal, giving it a unique edge and dining experience over other QSR restaurants. Kudu’s rigorous staff training and advanced management systems ensure consistently high standards of quality, customer service, reliability and efficiency, making Kudu one of the most recognised fast food brands.
The regional QSR sector is primed for further growth due to the attractive demographics, rising disposable incomes and under-penetration of restaurant chains across the region. The investment by Abraaj and TPG will help Kudu accelerate an expansive store roll out plan and is expected to enable the management to capitalize on operational improvement opportunities and sector know-how, building on the extensive experience of Abraaj and TPG in both the QSR and FMCG space – across the Middle East and globally.
Kudu has put in place a new management team to help the company achieve its rapid expansion strategy with Glen Helton appointed as Chief Executive Officer who brings with him more than 20 years of restaurant experience in the QSR sector, having held senior management positions in global brands such as Burger King and Popeyes.
Ahmed Badreldin, Partner at The Abraaj Group, said: “The region’s highly positive demographic and consumer trends coupled with Kudu’s well-loved brands and broad dining offering positions it to become one of the leading fast food groups in the Middle East restaurant sector. We hope to accelerate that growth working alongside TPG and the Kudu management team.”
Ramzi Gedeon, Partner at TPG, said: “We are excited about investing in Kudu and are particularly attracted to the company’s strong brand within the attractive Saudi Quick Service Restaurant market. We look forward to working with Abraaj and Kudu’s management to support the company’s ambitious future plans.”
Photo Caption: Ahmed Badreldin, Partner at The Abraaj Group
About THE ABRAAJ GROUP
The Abraaj Group (“Abraaj” or “the Group”) is a leading private equity investor, purpose-built for operating in the growth markets of Africa, Asia, Latin America, the Middle East, and Turkey.
Employing over 300 people, Abraaj has over 25 offices spread across five regions with hubs in Dubai, Istanbul, Mexico City, Nairobi and Singapore. The Group currently manages c. US$ 9 billion across regional, sector and country-specific Funds.
Abraaj has realized c. US$ 5.1 billion from over 70 full and partial exits, and Funds managed by the Group have made over 140 investments across 10 sectors including consumer, energy, financials, healthcare and utilities.
The Group is committed to the highest environmental, stakeholder engagement and corporate governance standards and is a signatory to the United Nations-backed Principles for Responsible Investment and the United Nations Global Compact. Abraaj’s founder, Arif Naqvi, was appointed to the United Nations Global Compact Board by UN Secretary-General Ban Ki-moon in 2012 and to the Interpol Foundation Board in 2014.
This publication is issued by Abraaj Capital Limited (“ACLD” or the “Firm”), a member of The Abraaj Group that is authorised and regulated by the Dubai Financial Services Authority (“DFSA”). Several Group members are regulated by a number of international regulatory authorities including the DFSA under whose rules ACLD has issued this publication.
About TPG
TPG is a leading global private investment firm founded in 1992 with over $67 billion of assets under management and offices in San Francisco, Fort Worth, Austin, Beijing, Chongqing, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, São Paulo, Shanghai, Singapore and Tokyo.
TPG has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, growth investments, joint ventures and restructurings.
TPG has expertise across the globe, having made investments in companies such as Bally Group (UK) Ltd., Creative Artists Agency, Burger King, Debenhams, Ducati Motor Holding SpA, Grohe, J.Crew, Neiman Marcus, Prezzo and Univision, as well as leading technology-based companies including Lenovo, Hotwire, Sabre Holdings (Travelocity), SuccessFactors, SurveyMonkey, RentPath and TES Global.
For more information visit www.tpg.com.
