Almarai Expands Beverage Empire with $277M Pure Beverages Acquisition

2 min
Almarai plans to buy Pure Beverages Industry for SAR 1.
04 billion.
Pure Beverages, founded in 1979, owns the well-known Ival and Oska brands.
The acquisition supports Almarai's strategy to expand its beverage portfolio.
Funding will come from Almarai's internal cash reserves, pending regulatory approval.
This acquisition reflects a strategic growth trend in the region's competitive beverage sector.
Back in the entrepreneurship scene, we at Arageek often see deals come and go—and there’s another notable one just around the corner. Saudi Arabia’s Almarai, famous primarily for its dairy and food products, is set to acquire Pure Beverages Industry, a manufacturer of bottled drinking water, for an impressive SAR 1.04 billion (roughly $277 million).
Pure Beverages, if the name doesn’t immediately ring a bell, is behind well-known brands like Ival and Oska. Mind you, the Riyadh-based company isn’t exactly a newcomer—it was founded in 1979 by none other than the Ajlan & Bros Group. So, they're certainly not fresh-faced novices in the market.
The deal will likely be financed entirely through Almarai's internal cash reserves, sparing them the usual headache of securing outside funding. That said, it isn't a done deal just yet; it's still waiting on a thumbs-up from the regulatory bodies and dependent on a few of those pesky contractual details being ironed out.
This development fits perfectly into Almarai’s broader ambition to expand its beverage portfolio—a strategy they're pinning high hopes on. Just this March, by the way, they nearly snapped up Hammoudeh Food Industries through one of their subsidiaries, but the purchase collapsed after the seller surprisingly failed to meet specific conditions. I reckon management must be breathing a sigh of relief that things seem to align better this round.
And believe it or not, such buys signal a growing trend in the region's beverage sector, which has been getting rather competitive recently. I’m not a fan of M&A deals just for the sake of growth, but this seems like a solid, strategic fit for Almarai's continuing ambitions.
On the flip side, big acquisitions can sometimes turn into a bit of a faff, with integration and cultures merging taking more effort than initially imagined. Still, Almarai seems undetered and clearly chuffed to bits with this potential addition to their stable.
As ever, we'll be keeping a close eye on things as they develop further—especially those nitty-gritty regulatory details—and keep you posted here at Arageek.
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