Tuesday 4 October 2022

Agthia set to buy majority stake in Egyptian food company

ABU DHABI, July 14, 2022

Agthia Group, one of the region’s leading food and beverage companies, today (July 14) announced that its board of directors has approved a strategic acquisition of 60% stake in Auf Group, a specialised healthy snacks and coffee manufacturer and retailer in Egypt.
Established 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 sold under the ‘Abu Auf’ masterbrand. 
With this move, Agthia gets to spread its footprint in the attractive Egyptian snacking market and, together with last year’s acquisition of leading processed meat producer Atyab, facilitates the establishment of the group as a major player in the Egyptian consumer packaged goods industry.
The acquisition also reflects Agthia’s ongoing commitment to strengthening its portfolio and diversification into branded consumer goods. 
It will build on last year’s acquisitions of the GCC’s leading innovative healthy snacks and food company, BMB Group, and the Al Foah dates business, strengthening Agthia’s market, category, and channel portfolio.
On the strategic move, Agthia Group Chairman Khalifa Sultan Al Suwaidi said: "As part of our strategy to stimulate growth and enhance our operations, we are focused on expanding Agthia’s footprint in the MENAP region. The acquisition of Auf Group is a compelling opportunity to bolster our delivery of this commitment, while further penetrating one of the region’s fastest-growing consumer markets."
"Following a record first quarter in 2022, we believe that Auf Group will accelerate Agthia’s strong growth trajectory both now and in the future," he added.
Group CEO Alan Smith pointed out that Auf Group was an important strategic target for Agthia to boost growth in its snacking and healthy food verticals, as it continues to adopt a more consumer-centric business model. 
"In addition to immediate access to new revenue streams and product lines, we are excited to expand our presence in Egypt and utilise the acquisitions made last year to further strengthen our operations and market revenue base," he noted.
The transaction will see Agthia acquire 60% of Auf Group, while Auf Group’s founders will retain a combined stake of 30% in the business and continue to lead the company with the full backing of Agthia’s regional footprint and operational support. 
Tanmiya Capital Ventures, an Egyptian private equity firm which invested in Auf Group in 2019, also remains a committed shareholder with a 10 percent stake.
"Auf Group has grown substantially in Egypt since its foundation in 2010, with consistent investment in corporate infrastructure and human capital enabling us to build a distinguished brand and remain at the forefront of the local healthy snacks market," observed Ahmed Auf. 
"Following our partnership with an institutional investor in 2019 to further accelerate growth and institutionalise the company, we believe we are now ready for the next step in our journey," he added. 
For Agthia, Freshfields Bruckhaus Deringer was international legal counsel, while Matouk Bassiouny & Hennawy was its Egyptian counsel and CI Capital the financial advisor. 
For Auf Group, EFG Hermes, a leading investment bank franchise in Frontier Emerging Markets (FEM), played a vital role advising its shareholders on the milestone deal.-TradeArabia News Service


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