The acquisition, which comes after the company’s acquisition of Egyptian processed meat producer Atyab in 2021, provides Agthia a stronger foothold in Egypt’s snacks market
Emirati food and beverage group Agthia has acquired a 60% stake in Egypt’s Auf Group. The deal has been valued at EGP 2.92 billion ($154.99 million), according to Reuters.
The acquisition, which comes after the company’s acquisition of Egyptian processed meat producer Atyab in 2021, provides Agthia a stronger foothold in Egypt’s snacks market.
“As part of our strategy to stimulate growth and enhance our operations, we are focused on expanding Agthia’s footprint in the MENAP [Middle East, North Africa and Pakistan] region,” said Khalifa Al Suwaidi, chairman of Agthia Group.
Agthia is owned by the Abu Dhabi government through Abu Dhabi Developmental Holding Company (ADQ), and has been making similar acquisitions in the region since late 2020 as part of efforts to become one of the Middle East’s top food producers.
Auf Group’s founders will keep a combined 30% stake in the business and will continue to lead the company, with Egyptian private equity firm Tanmiya Capital Ventures holding a 10% stake.
The acquisition is subject to satisfying customary closing conditions, including obtaining relevant regulatory approvals, a statement to Abu Dhabi stock exchange said.
In other ADQ related news, ADQ's Sixth of October Development and Investment Company (SODIC) saw its 100% acquisition offer rejected by Madinet Nasr for Housing and Development (MNHD) earlier today.
