"Influence" Studies Acquisition of 70% of "Wild Ibex" Beverages

Influence Food Products Company announced the signing of a non-binding memorandum of understanding on June 28, 2026, to study the potential acquisition of a majority stake representing 70% of the shares owned by Wild Ibex Beverages, which owns the brand "Ibex" specialized in the specialty coffee sector, along with owning a coffee roasting facility and a bakery.

This step is part of the implementation of Influence's five-year strategic plan for the period (2026–2030), which aims to achieve vertical expansion and diversify the company's portfolio in the food and beverage sector through investment in complementary sectors. Students from Al Yamamah University previously discussed this strategy on the Equity Hub platform under the title: "Influence's Five-Year Strategy: Regional Expansion and Digitization of Supply Chains".

The memorandum of understanding extends for 180 days, granting both parties the right to exclusive negotiations and to complete due diligence from legal, financial, and tax perspectives. The company clarified that there is currently no financial impact from the deal until the final evaluation is completed, and it confirmed that the deal is free of any related parties.
Students from Al Yamamah University discussed the dimensions of this potential acquisition and its financial and expansion implications as follows:

Due Diligence and Its Key Aspects

Student "Rimas Almashali" @Rimas Almashali opened the discussion by highlighting the true metrics of the deal, stating: "The true value of this deal will not be measured by the acquisition percentage of 70%, but rather by what the Due Diligence reveals about the quality of assets, sustainability of profits and cash flows, and the absence of any liabilities or risks that may affect the fair value of the acquisition.

Additionally, the financing structure will be a critical factor; if the company successfully finances the deal efficiently while maintaining liquidity and balanced debt levels, it could create value for shareholders and accelerate the implementation of the five-year strategic objectives.

In my opinion, the success of the deal is linked to the management's ability to integrate the target company's operations and transform this acquisition into sustainable revenue growth and improved operating margins in the long term."

Analysis of Valuation Mechanisms and Financing Structure Scenarios

In a detailed and extensive reading, student "Rana Alshamrani" presented her analysis, stating: "Due Diligence is not merely a procedural step preceding the completion of the deal, but it is the most influential factor in determining the final value of the acquisition, as its results will directly reflect on the pricing and structure of the deal.

The due diligence focuses on three main aspects: financial due diligence to review financial statements and assess the quality of earnings and their operational sustainability, analyze free cash flows and working capital, especially since Ibex owns a roasting facility and a factory that require high operational investments, followed by tax and zakat due diligence to verify any unresolved liabilities that may transfer to the buyer, as any risks discovered will reflect in a reduction of the fair value of the target company based on discounted cash flow (DCF) model and EV/EBITDA multiple.

Feasibility of Growth Through Direct Acquisition

For her part, student @Shahad Almuhaisen reviewed the dimensions of expansion efficiency, stating: "This step aligns with Influence's announced expansion strategy; acquiring an existing company may be more efficient than establishing a new project from scratch, especially if it has a well-known brand and an operational structure ready like cafes, roasting facilities, and a confectionery factory.

This model shortens time and reduces part of the capital expenditures (CapEx), while benefiting from the target company's expertise and customer base, but on the other hand, the success of the deal remains linked to the results of due diligence, as it will reveal any financial, legal, or operational liabilities that may affect the value of the acquisition.

Moreover, the method of financing the deal will be an important factor, as it is preferable for the company to achieve this expansion without significantly straining its liquidity, so that the acquisition positively reflects on profits and shareholder value in the long term."

Vertical Integration and Complementary Supply Chains

Student "Ghadah Alwallan" @Ghadah Alwallan concluded the discussion by focusing on the quality of competitive assets, stating: "The most important point in this deal is that the company is not just acquiring cafes, but a project that includes a brand, a roasting facility, and a confectionery factory.

Operationally, if these assets operate efficiently, it may help Influence expand faster and at a lower cost than building everything from scratch.

However, the success of the deal will not be determined merely by signing the memorandum of understanding, but by the results of due diligence and the final evaluation. Therefore, it will be important to know the method of financing the acquisition, and whether it will yield a return that justifies its cost and adds value to shareholders in the long term."

"Professor Abdulaziz Khreis analyzes by providing his comprehensive reading of the company's directions, stating:"

In a move that may not be surprising, Influence Company announced its entry into a new activity by signing a non-binding memorandum of understanding with several owners of Wild Ibex Beverages, aimed at studying the potential acquisition of a stake equivalent to 70% of the target company's shares.

Influence Company, known for brands like (Mamola - Anba - Wardiya, etc.), has no activities related to beverages, which confirms the company's approach to expanding its activities as noted in its plan for the coming years announced last week.

Wild Ibex Beverages is the company that owns the 'Ibex' brand specialized in the specialty coffee sector, in addition to a roasting facility for producing and roasting coffee and a factory for producing sweets and baked goods.

There are several questions that the reader may ask: Is this step considered late? Will the acquisition be through issuing shares or a cash amount? If it is through a cash amount, will it be from its own resources or through borrowing? And with many companies in this field, does Influence see that Wild Ibex is the most suitable for increasing its sales?

In any case, we await new developments through acquisition news, which we expect to see in the next 6 months, especially since the market is changing, and we do not rule out seeing a withdrawal from one of the parties, especially since the memorandum is non-binding."

"Financial and economic analyst Hamad Al-Saeed concluded the discussion with his comment, saying:"

Influence Company recorded a significant revenue jump of 59% to reach 429.6 million riyals in 2025, up from 270.2 million riyals in 2022, as a direct result of successful operational expansion with an increase in sales of 159.4 million riyals. With this growth, the cost structure showed high efficiency, as gross profit surged to 267.0 million riyals in 2025 compared to 147.8 million riyals in 2022, pushing the gross profit margin from 54.7% to 62.2%, and enhancing net profit to rise from 31.5 million riyals to 56.7 million riyals (margin of 13.2%), with earnings per share of 0.60 riyals.

This financial excellence places Influence at a pivotal stage in exploring the acquisition of 70% of Wild Ibex, representing a strategic shift from organic to inorganic growth, leveraging its operational efficiency (ROE 30.6%) to integrate ready assets (roasting facilities and factories) instead of starting from scratch, achieving economies of scale.

Strategically, the success of this deal remains contingent on the rigor of due diligence to ensure that the final valuation of the added assets does not pressure their operational cash flows (60.4 million riyals), but rather enhances cumulative profitability, ensuring the sustainability of the growth momentum that the company has achieved over the past three years.