MENA-Based Discount Retailer Kazyon Acquires 50% Stake In KSA-Born Dukan; Transaction Carried Out By EFG Hermes The deal between Kazyon and Dukan marks one of many M&A advisories carried out by EFG Hermes in the recent past.

Kazyon, an Egypt-based discount supermarket chain, has acquired a 50% stake in Dukan, a Saudi Arabia-based convenience retail grocery company, with the deal carried out by EFG Hermes, an Egypt-headquartered investment bank that primarily operates in frontier and emerging markets.

This transaction, which was carried out by EFG Hermes' investment banking division, signals Kazyon's move into the Saudi market. The remaining 50% stake in Dukan will be retained by the company's existing shareholder, Al Dabbagh Group.

Founded in 2014, Kazyon has already cemented a spot for itself in the regional discount retail sector with over 1,000 stores in Egypt and Morocco, with its offerings catering to millions of customers within its network. On the other hand, Dukan was founded in 2013 by Al-Dabbagh Group, and it is recorded to have over 100 stores across Jeddah, Makkah, and Al Taif, with plans to expand to Riyadh. Dukan's offerings include a full range of discounted basic groceries as well as an assortment of private label and exclusive brand products.

Karim Galal, Managing Director, EFG Hermes' investment banking division. Source: EFG Hermes

"This transaction aligns seamlessly with our strategic objective of expanding our presence in Saudi Arabia and highlighting the Kingdom's immense investment potential across diverse sectors," said Karim Galal, Managing Director at EFG Hermes' investment banking division. "Marking the second collaboration between EFG Hermes and Kazyon –with the first being EFG Hermes' advisory role in Kazyon's US$76.5 million capital raise/private placement in 2014– this successful track record is a testament to the longstanding relationship between the two entities. The deal also underscores our trusted capability to lead on transformative transactions, solidifying our position as the premier advisory house of choice in the region."

The deal between Kazyon and Dukan marks one of many M&A advisories carried out by EFG Hermes in the recent past. The investment bank has also advised on seven initial public offerings (IPOs) in the region in the past year, particularly within Saudi Arabia.