Marka buys Reem Al Bawadi for Dh315m
Company plans to open more Reem Al Bawadi locations in the region
Dubai: Retailer Marka said on Thursday it has acquired restaurant chain Reem Al Bawadi as it grows its hospitality division.
The deal, which is valued at Dh315 million, is being financed by both the company’s own funds and banks, according to a company statement. Nick Peel, chief executive of Marka, declined to name the banks.
The sale was arranged and coordinated by the advisory firm PineTree Capital, which is the adviser to Reem Al Bawadi.
“Our strategy is to look at UAE businesses that are in need of management expertise and particularly capital injection. We have plans in place to scale these businesses relatively quickly — in 18-24 month period,” Peel told Gulf News by phone on Thursday.
He added that the acquisition of the restaurant chain would bring in profit and revenue for Marka in the current year.
Marka plans to expand the presence of Reem Al Bawadi in 2015, with at least two new company-owned outlets in the UAE and up to five franchised outlets in the wider Middle East and North Africa region. Peel said some of the stores are expected to open in Dubai and Abu Dhabi, without identifying the exact locations.
Reem Al Bawadi, which serves Middle Eastern food, has six outlets in the UAE, two in Saudi Arabia and one in Bahrain, according to its website.
More acquisitions on way
Marka completed two acquisitions last month, including Retailcorp, a subsidiary of Istithmar World, for Dh220 million, and a 60 per cent stake in Cheeky Monkeys Playland & Sweet Surprises for Dh30 million.
Peel said that Marka is expected to close two more deals in the current year. The companies it aims to acquire operate in the sports and food and beverage sectors, he said, but declined to identify where they are based.
Marka currently operates four fashion outlets and 15 sporting goods stores.
Peel expects the company to be profitable in 2016. “The forecast for 2016 is certainly for Marka to be in profit, but what we will do in the third quarter is reforecast our profitability for 2015,” he said.
Marka registered a net loss of Dh8.37 million during the first quarter of this year. And it raised Dh500 million in an initial public offering on the Dubai Financial Market (DFM) last year.
The company’s shares were flat at Dh1.22 on Thursday.
