EFG Hermes advises Budget Saudi on its USD 121 million acquisition of AutoWorld

EFG Hermes, a leading investment bank in the Middle East and North Africa, said on Sunday it successfully advised United International Transportation Company, also known as Budget Saudi, on its acquisition of Al-Jazira Equipment Company, known as AutoWorld, for $121 million.

EFG Hermes was appointed by Budget Saudi as exclusive financial advisor for this transaction.

Budget Saudi is acquiring 100% of AutoWorld by issuing 7.0 million new shares to its owner, SEDCO Holding, one of Saudi Arabia’s leading family offices and institutional investors. The company will conduct the transaction through its wholly owned subsidiary Al Jozoor Al Rasekha Trucking Company (“Rahaal”). The 100% share swap will be effected at SAR 65 per share.

Karim Meleka, Co-Head of Investment Banking at EFG Hermes, commented: “This transaction represents a significant milestone for the mobility solutions sector in the Kingdom of Saudi Arabia. By combining the strengths of Budget Saudi and AutoWorld, the companies create a new mobility solutions powerhouse that will drive innovation and efficiency in the sector.

Both companies will unlock synergies, optimize operations and enhance service offerings to corporate clients. We are proud to have played a key role in advising on this transaction, which underlines EFG Hermes’ commitment to delivering exceptional value to our clients and contributing to the growth of the regional economy.”

This transaction is the latest in a series of M&A transactions that EFG Hermes has advised on in the GCC region over the years. Most recently, the department completed M&A advice to Cenomi Retail, the largest franchise retailer in the Kingdom of Saudi Arabia, on the sale of a selected portfolio of brands to Abdullah Al-Othaim Fashion Company. It also advised on the acquisition of a 50% stake in Dukan in Saudi Arabia by MENA retailer Kazyon earlier this year.