Dubai’s Express Group is sold to Saudi firm

Alkhabeer Capital, a Saudi Arabia-based investment bank, has taken a majority stake in Express Group, a Dubai-based packaging company.

Express Group, which was set up in 1990, produces corrugated and flexible packaging.

The firm consists of two business: Express Pack Print, which makes corrugated packaging for industrial use and consumer products, and Express Flexi Pack, which manufactures flexible packaging materials including BOPP labels for beverage bottles and aluminium foil lids for single-serve food products.

Having grown steadily over two decades ago, the Express Group now exports to more than 25 countries and serves sectors including kitchenware, water & beverages, packaged and fresh foods, household and personal care, said Alkhabeer.

Abdulla Zubair Mylanchikkal and Abdul Qadir Mohamed Theruvath, the Express Group’s joint founders, said partnering with Alkhabeer Capital would provide “a unique lever” for further growth.

“Express Group is well-positioned to capitalise on the significant market opportunities that exist for our group in the coming years underpinned by the significant economic growth projected post winning Expo 2020,” they said.

Jeddah-based Alkhabeer, which manages assets worth around $500m, plans to broaden its investments around the Gulf and to list on the Saudi stock exchange, a senior executive told Reuters in April.

Alkhabeer did not disclose financial details of the deal but said it was the firm’s second private equity transaction in the UAE’s industrial sector, according to the news agency.

Ammar Shata, Alkhabeer’s executive director and CEO, said the takeover would deliver “significant value for all parties involved”.

“Our investment in Express Group demonstrates once again the expertise of our private equity business in terms of creating mutually attractive partnerships with ambitious business owners that have a solid track record in the Gulf,” he said.