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The UAE food and beverage group Agthia completed the acquisition of a 60% stake in Abu Auf, which specializes in the production and sale of coffee products and healthy snacks in Egypt, for 2.9 billion Egyptian pounds.
The founder of Abu Auf retains 30% of the company and continues to lead the group. Tanmiya Capital Ventures owns the remaining 10 percent of the group, which was acquired in 2019.
The deal will strengthen Agthia’s presence in Egypt’s snack food market, which, according to Euromonitor, is expected to grow from AED8. Dollar).
The acquisition will help strengthen Agthia’s position as a major player in the region’s consumer goods industry, especially following its acquisitions last year of BMB Group in the healthy snacks segment and Al Foah Company, which specializes in processing dates. In the world, Al-Faisal Bakery and Sweets, Al-Nabil Company for Food Industries and Atyab Company.
Khalifa Sultan Al Suwaidi, Chairman of the Agthia Group Board of Directors, said the acquisition is in line with Auf Group’s 2025 growth strategy, which aims to acquire strong companies that can provide added value, integrate them into the company’s business and help it grow.
Al Suwaidi added that the market in the MENA region is one of the fastest growing consumer markets, explaining that the company will continue to look for available opportunities to strengthen its presence in the food and beverage industry in the Middle East and beyond.
Agthia chief executive Alan Smith said the acquisition was an important step for Agthia Group as it played an important role in strengthening its presence in the snacks and health food markets.
He added that the group will work to integrate Abu Auf’s business into its portfolio to ensure maximum benefit from available synergies and growth opportunities.
Ahmed Auf, chief executive officer of Abu Auf, said the completion of the transaction is a step to initiate the next phase of the growth process, focusing on strengthening Agthia’s position in the snack food market.
Freshfields Brockhaus Dringer acted as Agthia’s international legal advisor, Maatouk Bassiouni & Hinnawi acted as Agthia’s Egyptian legal advisor and CI Capital acted as Agthia’s financial advisor.
CI Capital Investment Bank CEO Amr Helal said the implementation of the transaction is a continuation of CI Capital’s plans to strengthen its market and regional expansion in Egypt after serving as financial advisor to a number of large companies outside Egypt, including Lebanon’s Blom Bank, UAE Aldar Alliance, ADQ Holdings and Abu Dhabi Bank. Commercial Dhabi and others were involved in several deals.
He added that the firm had executed more than $1.6 billion in transactions over the past 18 months.
Agthia, majority-owned by the Abu Dhabi government through state investor ADQ, has made a series of acquisitions in the region since late 2020, including a previous one in Egypt, in a bid to become one of the largest food industry players in the Middle East.
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