Dubai food and beverage company Agthia Group announced the approval of a strategic acquisition of a 75.02% stake in Egyptian frozen pourtly and beef product producer Ismailia Investments.

The transaction values Ismailia Investments, who owns brands Atyab, Meatland, Shiketita, and Furat, at an enterprise value of LE 3.2 billion ($205 million).

Subject to obtaining customary closing conditions, the transaction is forecast to result in an immediate and long-term value for Agthia shareholders.

According to a press release, Atyab founder, Attito Raslan will retain a stake in Ismalia Investments in order to support business growth using the Dubai group’s financial strength and backing.

"The proposed acquisition of Atyab presents a significant opportunity for Agthia to expand in the processed protein sector following our recent announcement of board approval to acquire Nabil Foods," said Agthia CEO, Alan Smith.

He added that the new deal will place Agthia Group at the forefront of a growing sector in one of the fastest growing economies in the Middle East and North Africa, and the largest consumer market with a population of nearly 100 million, dominated by youth and a growing purchasing power.

Atyab saw strong profit margins in 2020 amounting to about 19 percent before interest, tax, depreciation and amortization, with net revenues of around AED 424 million and an EBITDA of AED 79 million in 2020.

Ismailia Investments owns 11 distribution centers all over Egypt and employs more than 2,500 employees.