Introduction
In a strategic move to bolster its presence in the consumer sector, Hassana Investment Company, the investment arm of Saudi Arabia’s General Organization for Social Insurance (GOSI), has acquired a 40% stake in Berain Water Company. This acquisition signifies a significant partnership between Hassana and Mohammed Abdulaziz Al-Rajhi & Sons Investment Company (Rajhi-Invest), Berain’s previous sole stakeholder.
Details of the Acquisition
Hassana’s acquisition of the 40% stake in Berain Water Company was finalized on March 18, 2025. While the exact financial terms of the deal remain undisclosed, this investment aligns with Hassana’s strategy to diversify its portfolio by investing in high-performing businesses within the consumer sector. Berain, established in 2005, has grown to become a leading player in Saudi Arabia’s bottled water market, offering a diverse range of products under a well-established multi-brand portfolio.
Berain Water Company’s Market Position
Berain operates a fully integrated business model, encompassing advanced manufacturing capabilities, efficient procurement processes, and an extensive logistics and distribution network. The company boasts three state-of-the-art factories located in Riyadh and Jeddah, complemented by 24 storage and warehousing facilities across various cities in Saudi Arabia. This infrastructure positions Berain to effectively meet the growing demand for bottled water products across the Kingdom.
Strategic Implications of the Partnership
The partnership between Hassana and Rajhi-Invest is expected to drive transformative growth for Berain within Saudi Arabia’s fast-moving consumer goods (FMCG) landscape. By leveraging Hassana’s investment expertise and Rajhi-Invest’s industrial experience, Berain aims to enhance its market share and operational efficiency. This collaboration reflects a shared vision to capitalize on the robust fundamentals of the Saudi consumer market.
Hassana’s Investment Strategy
Hassana Investment Company manages assets exceeding SAR 1.2 trillion (approximately USD 320 billion) on behalf of GOSI. The firm’s investment strategy focuses on acquiring well-performing businesses that exhibit stable and attractive cash flow profiles, underpinned by strong market fundamentals. This acquisition aligns with Hassana’s objective to generate long-term value for future pensions of Saudi generations by leveraging strategic investments across various assets and geographies.
Rajhi-Invest’s Perspective
Rajhi-Invest, founded by the late Sheikh Mohamed Al Rajhi, is among Saudi Arabia’s leading family investment groups. With a legacy spanning over 65 years, the company manages a diverse portfolio that includes banking, industrials, hospitality, and real estate sectors. The partnership with Hassana is viewed as a testament to Rajhi-Invest’s capability in building successful industrial players and is considered a decisive step toward realizing its vision for Berain.
Future Outlook
The collaboration between Hassana and Rajhi-Invest is anticipated to create powerful synergies that will drive transformative growth for Berain across the Saudi FMCG landscape. By combining their respective strengths, both entities aim to enhance Berain’s competitive position, expand its market reach, and contribute to the overall development of Saudi Arabia’s consumer goods sector.
Conclusion
Hassana Investment Company’s acquisition of a 40% stake in Berain Water Company marks a significant milestone in Saudi Arabia’s investment landscape. This strategic partnership is poised to strengthen Berain’s market position and underscores the attractiveness of the Saudi consumer sector to institutional investors. As both Hassana and Rajhi-Invest embark on this collaborative journey, their combined expertise is expected to drive Berain’s growth and contribute positively to the Kingdom’s economic diversification efforts.
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