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ADNH Catering Raises Stake in Compass Arabia to 50%, Assumes Management

Prime Highlights

  • ADNH Catering increases ownership in Saudi-based Compass Arabia from 30% to 50%
  • Financial results of Compass Arabia will be added to ADNH Catering’s books from August

Key Facts

  • Compass Arabia has been serving the Saudi catering market for 12 years
  • ADNH recently acquired Food Nation Catering in the UAE, its second major deal this year

Background

Abu Dhabi National Hotels’ subsidiary ADNH Catering has strengthened its presence in Saudi Arabia by increasing its stake in Compass Arabia to 50%, up from the previous 30%. With this step, Compass Arabia will now be managed directly by ADNH Catering

The other half of Compass Arabia remains owned by Al-Rushaid Petroleum Investment Company. From this month, Compass Arabia’s performance will be reflected in ADNH Catering’s consolidated financial statements.

ADNH Catering described the acquisition as launching a “new era of growth and expansion” in Saudi Arabia. The company said it will bring its experience in procurement, workforce training, and operational management to the venture. Compass Arabia is a company specializing in catering services in Saudi Arabia with 12 years of experience, and is in a good position to take advantage of the increasing demand in the kingdom.

American Products on Thursday announced its second acquisition deal of this year; the company has acquired the UAE-based leading catering, food service provider in the UAE education sector, and the Food Nation Catering Services LLC. The two transactions are a continuation of ADNH’s Business of inorganic growth through acquisition to add scale and diversify markets.

Saudi Arabia is viewed as a promising market for hospitality and catering, boosted by economic diversification plans under Vision 2030, new infrastructure projects, and a growing population. ADNH believes its entry at a higher stake will allow it to play a stronger role in this expanding sector.

On the Abu Dhabi Securities Exchange (ADX), ADNH Catering shares were trading at Dh0.86, reflecting a decline of just over 5% since the beginning of the year.

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