EFG Hermes, the leading investment bank in Frontier and Emerging Markets (FEM), announced its successful advisory role in a merger and acquisition (M&A) deal for Kazyon, a prominent discount retailer in the MENA region. Kazyon acquired a 50 percent stake in Dukan, the sole discount retailer in Saudi Arabia, marking its strategic entry into the Saudi market. Al Dabbagh Group, the existing shareholder of Dukan, retains the remaining 50 percent stake. EFG Hermes provided advisory services to Kazyon, with White and Case acting as legal counsel.
Expansion into Saudi Arabia
Karim Galal, managing director at EFG Hermes’ Investment Banking Division, expressed pride in facilitating Kazyon’s acquisition of Dukan, which aligns with their objective of expanding in Saudi Arabia and showcasing the Kingdom’s investment potential. This transaction strengthens the longstanding relationship between EFG Hermes and Kazyon, following their collaboration in Kazyon’s $76.5 million capital raise/private placement in 2014, he said.
“The deal also underscores our trusted capability to lead on transformative transactions, solidifying our position as the premier advisory house of choice in the region.”
Overview of Dukan and Kazyon
Dukan, founded in 2013 by Al-Dabbagh Group, is a fast-growing convenience retail grocery company in Saudi Arabia. With over 100 neighborhood stores across Jeddah, Makkah, and Al Taif, Dukan offers discounted basic groceries and a differentiated assortment of private label and exclusive brand products. Kazyon, established in 2014, has emerged as a distinguished player in the regional discount retail sector, operating over 1,000 stores in Egypt and Morocco. Known for providing high-value products at competitive rates, Kazyon has successfully served millions of customers within its extensive network. The acquisition of Dukan represents a significant milestone in Kazyon’s regional growth strategy, following its successful entry into Morocco in 2023.
EFG Hermes’ strong advisory track record
Furthermore, EFG Hermes maintains its leading position in the market with its unrivaled advisory track record on high-profile transactions. In addition to the Kazyon-Dukan deal, EFG Hermes has advised on major M&A transactions, including Jadwa’s $500 million sale of a 100 percent stake in Meswak, Abu Auf’s $115 million sale of a 60 percent stake to Agthia, the $388 million sale of an 85.5 percent stake in SODIC to Aldar, and PIF’s $150 million acquisition of a 33.4 percent stake in B.TECH. EFG Hermes has also provided advisory services for seven IPOs in the region, including landmark offerings in Saudi Arabia. Recent examples include the $1.2 billion IPO of ADES Holding Company, the $378 million IPO of Riyadh Cables, and Lumi Rental Company’s $290 million IPO on the Saudi Exchange.
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