Almost 11 months after listing on the Saudi Arabian parallel exchange Nomu, food delivery company Jahez has acquired local dessert delivery platform The Chefz for $172.9 million.
Founded in 2018 by Ghassab Al Mandel, Jahez commands a market capitalisation of $2.4 billion.
Jahez signed the deal with Abdulrahman Abdullah Alshabanat, Abdulrahman Ahmed Almarshed, Abdullah Mohammed Aldosari, Saqr Fund L.P, Impact46 Seed Fund and Muthmir for Investment Co. to seal the takeover deal.
The acquisition is a part-cash, part-stock deal. The cash transaction is worth SAR325 million while Jahez will issue new shares of an equal amount. This will effectively be 5% of the share capital of Jahez, which floated its initial public offering in December last year.
As part of the latest deal, the founding members of The Chefz will receive an earn-out of SAR100 million in cash, subject to various performance-related targets attained between January 1, 2022, and December 31, 2022.
The Chefz owns the Best Chefs Catering Company, which operates a delivery app specializing in sweets, flowers and perfumes.
“The transaction will allow Jahez to complement its leading food delivery platform in quick service with The Chefz’s offerings in fine dining, confectionery, and leisure goods,” Jahez said.