Jahez acquires Chefz for SAR650m

After the extremely successful IPO of homegrown brands Jahez, hiring CIO Abdulaziz Al Houti to expand the investments team including Heni Jallouli, CFO has led Jahez to be on somewhat of a shopping spree to strategically dominate the food delivery and wider ecommerce market within KSA.

Chefz was acquired at SAR650M or $172.9M, the acquisition complementing the food delivery platform with other offerings including fine dining, confectionary and leisure goods. The transaction included part cash consideration and in-kind consideration through the issuance of new shares in Jahez to the sellers. The transaction includes a cash consideration worth SR325 million and the issuance of new shares in Jahez with a value of SR325 million, representing 5% of the delivery firm’s share capital. Chefz is the owner of Best Chefs Catering Company, which operates a delivery app specializing in sweets, flowers and perfumes.

Jahez signed the SPA with Abdulrahman Abdullah Alshabanat, Abdulrahman Ahmed Almarshed, Abdullah Mohammed Aldosari, Saqr Fund L.P, Impact46 Seed Fund/Impact Seed Fund Co., and Muthmir for Investment Co.

As part of the deal, the founding members of The Chefz will receive an earn-out of SR100 million in cash, subject to various performance-related targets attained between January 1, 2022, and December 31, 2022. The share capital of Jahez increased from SR104.9 million to SR108.7 million.

“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.

Background on Jahez

In 2022, Jahez, founded by Ghassab Al Mandel in 2016, was listed on the Saudi Exchange’s Parallel Market (Nomu), with a market capitalisation of $2.4 billion.