First Mills acquires Al-Manar Feed Company in US$20M deal

SAUDI ARABIA – First Milling Company (First Mills), a Saudi producer of flour, bran, animal feed, and wheat derivatives, has completed the acquisition of Al-Manar Feed Company Ltd., a leading feed producer in the Kingdom.

The SAR 77 million (US$20.5 million) transaction was confirmed on August 12 and will see First Mills take full ownership of Al-Manar, with the deal financed through Sharia-compliant bank facilities, available cash, and other financing programs.

The financial results will be reflected in the company’s third-quarter 2025 consolidated statements.

Capacity boost and strategic expansion

Al-Manar, based in Makkah, specialises in high-quality feed for ruminants, poultry, and horses. The acquisition is expected to expand First Mills’ production capabilities significantly. 

The company said the deal will add at least 420 tonnes per day of feed output, raising its total daily production to 1,320 tonnes. The newly acquired Al-Manar Feed plant in Jeddah will further contribute 450 tonnes per day, bringing total feed production capacity to 1,350 tonnes daily.

Abdullah Ahmed Al-Shehri, vice chairman of First Mills’ board, described the move as a major milestone for the company’s growth.

“We continue to pursue high-value opportunities for sustainable growth in support of the objectives of Saudi Vision 2030 and to enhance the contribution of local production to achieving food security, while serving our customers, including livestock and poultry breeders, across all regions of the Kingdom,” he said.

CEO Abdullah Abdulaziz Ababtain added that the acquisition will allow First Mills to broaden its portfolio and strengthen its market responsiveness.

“The acquisition will enable us to deliver a more comprehensive range of products and services, better meet the needs of the local market and reinforce the company’s long-term competitive position,” he said.

Regulatory and operational approvals

The board of directors had approved the acquisition on August 11, subject to several conditions, including achieving efficiency targets and successfully completing dynamic and static operational tests to ensure both quality and quantity standards. 

These requirements, alongside due diligence reviews, have since been fulfilled, enabling the deal to be finalised.

First Mills confirmed that all regulatory and commercial approvals have been obtained, including clearance from the General Authority for Competition.

With Al-Manar now fully integrated, the company expects to expand its geographic reach, meet rising demand in local and regional markets, and diversify revenue streams in line with its long-term strategy.

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