March 10 (Bloomberg) -- Fawaz Abdulaziz Alhokair & Co., the Saudi Arabian retailer that owns the franchises for Gap Inc. and Marks & Spencer Group Plc in the kingdom, is planning an acquisition in the U.S. or U.K.
The company, also known as Al Hokair Fashion Retail, is looking at three to five targets and aims to close a deal in the financial year that runs from April, Rob Cass, the company’s strategy and investor relations director, told reporters in Dubai today.
“We open a store every 18 hours somewhere in the world, which means that the partner needs to be like-minded with the rate at which we grow,” he said.
Al Hokair, which operates in 20 countries including in the former Soviet states and North Africa, bought Spanish retailer Blanco for 11 million euros ($15 million), Cass said. The company plans to expand the brand outside Spain, adding 50 stores each year through franchises, he said.
Al Hokair, which currently has 1,885 outlets, is also seeking to reduce its share of sales from its home market.
“We’re going to be adding 404 stores in the 2014-15 financial year, 200 stores in Saudi and 200 internationally,” Cass said. “Saudi share of sales has fallen from 89 percent in 2010-11 to 67 percent in 2013-14. We plan to reduce this further to 54 percent in the next five years.”
The retailer expects total sales to surge to 12 billion riyals ($3.2 billion) in the 2018-19 financial year from an estimated 5.7 billion riyals this financial year, he said.
The shares were unchanged at 180 riyals at the close in Riyadh today, valuing the company at 18.9 billion riyals. The stock has advanced 30 percent this year.