UAE’s food and beverage firm Agthia Group’s board approved a proposed acquisition of 60% of Egyptian snacks manufacturer company Abu Auf Holding worth $154.5 million (EGP 2.92 billion).
The Abu Dhabi-based food and beverage firm said in a bourse filing Thursday that the transaction will expand its footprint in the attractive Egyptian snacking market. Agthia said that the deal will also facilitates the establishment of the firm as a major player in the North African country’s consumer packaged goods industry following the acquisition of processed meat producer Atyab last year.
The deal will be executed through Agthia’s subsidiary AG Synergy Holding 1 RSC from existing shareholders Ahmed Auf, Mohamed Auf, Ayman Auf and Tanmeya Energy BV, a vehicle managed by Tanmiya Capital Ventures, said a Reuters report.
Upon completion of the deal, which is subject to regulatory conditions, the founders will hold 30% and TCV, an Egyptian private equity firm that invested in Abu Auf in 2019, will hold a 10% stake, Agthia said in a statement.
Founded in 2010, Auf Group processes, manufactures, retails and distributes a broad portfolio of products across Egypt including coffee, nuts, healthy snacks and other confectionery products.
“Auf Group is an important strategic target for Agthia to boost growth in our snacking and healthy food verticals, as we continue to adopt a more consumer-centric business model,” Alan Smith, CEO of Agthia Group said in a statement.
Agthia, which is majority owned by Abu Dhabi state investor ADQ, has made a string of acquisitions and investments in the Middle East since late 2020, including previously in Egypt, as it seeks to become one of the top food industry players in the region.
The company’s board approved a $24.5 million investment to expand its protein brand Nabil Foods in Saudi Arabia. It has operations in the UAE, Saudi Arabia, Kuwait, Oman, Egypt, Turkey and Jordan.
Abu Dhabi Securities Exchange-listed Agthia’s leading brands include Al Ain Water, Al Bayan, Alpin Natural Spring Water as well as Agrivita, Al Foah and Atyab.
EFG Hermes advised Auf Group and TCV on the deal.
