MEFIC Private Equity F&B Opportunities Fund acquires a stake in Sultan Delight Burger, a leading Saudi quick service restaurants chain
October 15, 2017
MEFIC Capital, in its capacity as fund manager of MEFIC Private Equity Food & Beverage Opportunities Fund (the “Fund”), has successfully completed an investment in Ghatha’a Al Sultan For Fast Foods Company, a leading quick service restaurants (QSR) chain in the Western & Southern Province of the Kingdom operating under the brand name “Sultan Delight Burger”.
Established in 2004 by the Al Musbahi family, Sultan Burger has a total footprint of 22 restaurants in Jeddah, Mekkah, Rabigh and Jazan and has been rapidly expanding in Southern and Western Provinces. Sultan Burger restaurants offer a predominantly burger menu covering beef, chicken and fish, along with sandwiches, breakfast and deserts. The Company is reputed for its tasty burgers with low pricing suitable to mid and low-income clients.
The Fund has acquired a substantial minority stake in the Company, with the founders retaining control and management of the business.
Aref Musbahi, founding shareholder and CEO of Sultan Burger, stated, “Our partnership with MEFIC Capital marks a key milestone in the success story of Sultan Burger. We are confident that with the support of a prominent financial institution like MEFIC Capital, we are well positioned to take the Company into the next stage of its development and accelerate its expansion.”
Ibrahim Al Hedaithy, Managing Director MEFIC Capital, commented, “Sultan Burger is a success story demonstrating the Saudi talent to create a local brand and concept that can compete with the best international QSR brands. Sultan Burger is well positioned in the growing Saudi fast food sector and we are committed to support our partners to accelerate the development of the Company throughout the Kingdom.”
Joseph Hakme, Head of Private Equity at MEFIC Capital, added, “Our investment in Sultan Burger is consistent with our strategy of investing in successful Saudi SMEs enjoying strong track record and solid growth potential. We look forward to further expanding MEFIC’s Private Equity franchise which started with our very successful investment in Bodymasters in 2012, and are currently working on some exciting opportunities in both equity and mezzanine financing within the Saudi SME sector”
Meshal Al Akeel Law Firm in Affiliation with Hourani & Associates acted as Legal Advisor and KPMG acted as Financial Due Diligence advisor to MEFIC Capital. Mohammed AlDhabaan & Partners in association with Eversheds Sutherland LLP acted as Legal Advisor to the sellers.
MEFIC Capital is regulated by the Capital Market Authority of the Kingdom of Saudi Arabia (CMA No. 37-060209).