IHC, Alabbar express interest in IFFCO as packaging giant navigates US$2B debt restructuring

UAE – Abu Dhabi’s IHC and Dubai businessman Mohamed Alabbar have expressed preliminary interest in acquiring IFFCO, whose operations include packaging materials manufacturing, as the company navigates US$2 billion in debt.

Discussions remain preliminary and no formal offers have been submitted. Potential investors are assessing either the entire business or selected assets, with any transaction likely dependent on the outcome of ongoing insolvency proceedings. 

Alabbar told media outlets he had sent letters to IFFCO’s board members and lending banks expressing interest in acquiring the whole business. 

Creditors filed insolvency petitions in the Isle of Man and Singapore after negotiations with the company stalled. 

IFFCO declined to comment, while representatives of IHC and the company’s lenders did not immediately respond to requests for comment.

IFFCO’s Packaging Footprint

IFFCO operates across multiple sectors including edible oils, food ingredients, consumer foods, packaging, chemicals, and logistics. 

The company’s packaging division produces flexible packaging, rigid containers, labels, and cartons for food and consumer goods customers. 

IFFCO’s packaging manufacturing capabilities serve both its own consumer brands (London Dairy ice cream, Tiffany, Alfa, Noor) and third-party customers. 

The packaging division is integral to IFFCO’s vertically integrated model, supplying packaging materials to the company’s food divisions while also serving external clients. 

For a potential acquirer, IFFCO’s packaging operations offer entry into the GCC packaging market with established customers and production capacity. 

The US$2 Billion Debt Crisis

Creditors filed insolvency petitions after attempts to reach a consensual debt restructuring agreement failed. 

Creditors have reportedly sought the appointment of restructuring specialists from FTI Consulting as provisional liquidators in proceedings linked to IFFCO, according to earlier media reporting. 

However, this does not mean that IFFCO has been wound up or that the business has ceased operations. 

The reported investor interest follows a deterioration in IFFCO’s financial position after attempts to reach a consensual debt restructuring agreement failed. 

IFFCO’s assets could be worth several billion dollars, although any valuation would depend on the outcome of restructuring efforts and the future shape of the business.

Strategic Value for Acquirers

IHC, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, has expanded rapidly in recent years through investments across sectors including food, healthcare, infrastructure, technology, and energy, becoming one of the UAE’s most valuable listed firms. 

Alabbar is the founder of Emaar Properties and a major shareholder in Americana Restaurants, the Middle East operator of KFC and Pizza Hut.

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