Saudi healthcare group acquires online retailer Mumzworld
Saudi healthcare and consumer goods conglomerate Tamer Group acquires Middle East’s largest online mother and child retailer, Mumzworld, amid a regional boom in e-commerce.
Mumzworld has signed a sale and purchase agreement with the Jeddah-based group for a majority stake in the company, he said on Monday.
The companies did not disclose the value of the transaction.
“We are better positioned than ever to accelerate growth, drive wider geographic expansion and continue to build a technology footprint serving customers better than ever,” said Mona Ataya, Managing Director of Mumzworld.
“We will continue to own the supply chain for mother and child.”
The Covid-19 pandemic has accelerated consumers’ shift to online shopping in the Middle East amid movement restrictions to curb the spread of the virus, pushing e-merchants to expand further.
Mumzworld said the regional market for mother, baby and child products is over $ 10 billion, with the online segment growing by about 39% per year. However, online penetration remains below 10 percent.
The transaction will give Mumzworld access to a large pool of committed capital that will allow the company to “supercharge” its growth.
The deal will also allow Mumzworld to continue to expand into key regional markets, expand its digital footprint and gain access to Tamer Group’s strong distribution network, he said.
While Mumzworld will retain its entire leadership team and brand image, the combined companies platform has the potential for “huge synergies” in purchasing, logistics and infrastructure, he said.
Tamer Group includes consumer and nutrition divisions, as well as logistics services. It has annual sales of 9.2 billion Saudi Riyals ($ 2.5 billion).
“We believe e-commerce is the future of CCG,” said Group Chairman Ayman Tamer.
“As a major player in the FMCG space, e-commerce is no longer an option, but a necessity.”
Mumzworld was founded in 2011 by Ms. Ataya and Commercial Director Leena Khalil, who will continue to lead the company, serve on the board of directors and “remain significant shareholders,” the company said.