Tanmiah Food Company is purchasing a poultry processing facility in its home market of Saudi Arabia for SR143m ($38.1m).
Its local Agricultural Development Company (ADC) subsidiary signed a contract with the Dajin Poultry Company on 1 December to buy the plant, which is expected to be operational under the new owners in 2025.
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“The transaction demonstrates Tanmiah’s commitment to supporting the Kingdom’s food security and self-sufficiency objectives under ‘Vision 2030,’” Tanmiah said in a stock-exchange filing.
“This facility is designed to enhance our operational efficiency and bolster our capacity to meet growing market demands. This investment aligns seamlessly with our vision of driving growth, while upholding the highest standards of environmental stewardship and operational excellence.”
Tanmiah, which is led by CEO Zulfiqar Hamadani, said the factory purchase will be funded through its existing banking facilities.
The company rears antibiotic-free, corn-fed chickens in a cageless environment without using any hormone additives. ADC markets the products within the six-member Gulf Cooperation Council, which includes Saudi Arabia, under the Tanmiah brand name.
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By GlobalDataIts halal poultry includes fresh and frozen, along with a ready-to-cook marinated range. ADC serves the retail market but also the foodservice channel, counting the Popeyes restaurant chain as a key customer.
In the retail space, ADC supplies the chains Noori, Nesto, Al Raya, Sarawat and LuLu.
In 2022, US-based meat giant Tyson Foods invested in a pair of Tanmiah’s subsidiaries, including a 15% interest in ADC and a 60% shareholding in Supreme Foods Processing Company.
Supreme Foods produces fresh beef and chicken, along with value-added meat products sold into the GCC, as well as Lebanon and Jordan.
Speaking of the tie-up with Tyson, Hamadani said at the time: “Our strategic partnership marks a significant milestone in Tanmiah’s journey and demonstrates our commitment to growth and supporting Saudi Arabia’s food security objectives.
“This transaction will not only reinforce our positioning in the domestic market but will also enable us to expand our global footprint through leveraging Tyson Foods’ long-standing relationships with customers worldwide.”
In support of Saudi Arabia’s food-security efforts, Tanmiah entered a joint venture with Ukraine’s MHP group last year. The farming project in the Kingdom included a hatchery and feed mill.
It was set up with another of Tanmiah’s subsidiaries, Desert Hills Veterinary Services, with an investment of SR200m, with the latter holding 55% of the venture.
