Sunday 13 June 2021
 
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Agthia buys majority stake in top Mideast food company Nabil

DUBAI, 26 days ago

Agthia Group, a leading food and beverages company based in the UAE, has announced that it has won  approval from its shareholders for the acquisition of a majority stake in Nabil Foods, a major regional processed meat producing company.
 
As per the deal, Agthia has acquired an 80% stake in Nabil Foods, including a 60% stake acquired from ADQ, one of the region’s largest holding companies, in exchange for a convertible instrument as well as a further 20% stake acquired from Ideal Holding Limited in exchange for cash. 
 
The fixed price at which the convertible instrument will convert into shares in Agthia is AED5.50 per share, implying an equity value of AED394 million for a 60% stake in Nabil Foods.
 
This marks Agthia’s first entry into the processed protein industry through a well-established brand with distribution in more than 20 local and international markets, and a successful track record of over 75 years. 
 
It also expands Agthia’s overall category portfolio, adding processed protein to its existing dates, bottled water, convenience food, flour and animal feed businesses.
 
With this move, Agthia will now have an established presence in Jordan for the first time, allowing for significant cross-selling opportunities, said the statement from Agthia. 
 
It will quickly benefit from new revenue streams, cost and revenue synergy opportunities, wider regional and channel expertise, expanded product offerings, and enhanced financial performance and profitability, it stated.
 
Building on the acquisition of Nabil Foods, Agthia’s board recently approved the strategic acquisition of a majority stake in Atyab, a reputed Egyptian producer of frozen processed chicken and beef products, that will further strengthen its presence within the processed protein category, it added.
 
On the takeover, CEO Alan Smith said: "Agthia, through the support of ADQ, is delighted to have Nabil Foods as part of its family, and we are convinced that this transaction will place Agthia at the forefront of a fast-growing protein industry."
 
"Backed by Agthia’s strong financials, regional operations and industry expertise, we are committed to further developing the Nabil business and brand and are confident about achieving significant growth in both existing and new markets," observed Smith.
 
"This acquisition is well aligned with our 2025 transformational strategy that is focused on pursuing new, scalable opportunities in the region over the next five years that will help extend Agthia’s market leadership, provide significant value for all our stakeholders and continue to drive profitability with a consumer-centric approach," he added.
 
Nabil Foods has a processing capacity of 43,000 tons per year and 600 individual product lines. It is also a sector leader in research and development and will complement Agthia’s own research and development efforts, unlocking opportunities to develop new by-products with higher margins in line with evolving consumer trends.-TradeArabia News Service



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