Nofoth Food Products Company signs SAR 55.95 million agreement to acquire 65% stake in Plenty Food Company

Nofoth Food Products Company has signed a sale and purchase agreement to acquire a 65% stake in Saudi Arabia-based Plenty Food Company for up to SAR 55.95 million. Funded internally, the transaction supports Nofoth's strategic expansion within the healthy food segment across the Kingdom.

Nofoth Food Products Company has formally entered into a Sale and Purchase Agreement to acquire a 65% majority stake in Plenty Food Company from its founding shareholders for a total transaction value of up to SAR 55.95 million. Signed on August 18, 2026, the deal comprises a fixed cash consideration of SAR 52.70 million alongside an earn-out contingent consideration of up to SAR 3.25 million. The transaction is slated for execution in Saudi Arabia and will be fully funded through Nofoth’s internal cash resources, subject to customary closing conditions and regulatory approvals from the General Authority for Competition.

Nofoth Food Products Company is a Saudi joint-stock enterprise active in the food processing, bakery, and retail food production sectors across the Kingdom. Plenty Food Company is a Riyadh-based limited liability firm specializing in healthy food concepts, operating recognized specialized retail brands including PLENTY Salads and CATCHA Deli. Plenty Food Company demonstrated sustained top-line and bottom-line expansion, reporting revenues of SAR 23.97 million in 2023, SAR 37.27 million in 2024, and SAR 52.46 million in 2025, alongside net profits of SAR 4.39 million, SAR 5.98 million, and SAR 7.14 million over the same three-year period.

This majority acquisition represents a major strategic move by Nofoth to diversify its portfolio into fast-growing, high-margin food and beverage niches. By incorporating established healthy dining concepts into its broader distribution networks and supply chain operational capabilities, Nofoth aims to capture rising consumer demand for premium lifestyle dining. The inclusion of performance-linked contingent consideration, based on audited financial results for the fiscal year ending December 31, 2027, aligns value realization directly with long-term earnings targets.

The transaction highlights the broader consolidation trend sweeping the Saudi food and beverage retail market, driven by shifting consumer preferences toward healthy living and wellness. Strategic investments by established sector players reflect robust market liquidity and confidence in domestic demand under national economic diversification goals. For institutional investors, the acquisition underscores Nofoth's disciplined growth strategy, leveraging internally generated cash flow to secure revenue-accretive assets without burdening its balance sheet with external leverage.