Agthia completes acquisition of majority stake in Auf Group

Auf Group enhances Agthia’s footprint in Egyptian snacking market; Acquisition expands Agthia’s position as a leading regional CPG company; Agthia’s established distribution network to accelerate Auf Group’s international growth



Khalifa Sultan Al Suwaidi, chairman of Agthia Group, said the acquisition of Auf Group aligns with the group's 2025 growth strategy to acquire, integrate and grow attractive businesses in value-add categories. — Supplied photo
Khalifa Sultan Al Suwaidi, chairman of Agthia Group, said the acquisition of Auf Group aligns with the group's 2025 growth strategy to acquire, integrate and grow attractive businesses in value-add categories. — Supplied photo
by

A Staff Reporter

Published: Wed 30 Nov 2022, 6:11 PM

Agthia Group, one of the region’s leading food and beverage companies, on Wednesday announced the completion of its acquisition of a 60 per cent stake in Auf Group, a specialised healthy snacks and coffee manufacturer and retailer in Egypt.

The acquisition enhances Agthia’s footprint in the attractive Egyptian snacking market, which is forecast to grow from around Dh8.7 billion ($2.3 billion) in 2020 to around Dh11.2 billion ($3.05 billion) by the end of 2024, according to Euromonitor.

It also strengthens Agthia’s position as a leading regional consumer packaged goods (CPG) company, building on last year’s acquisitions of BMB Group (a leading manufacturer of healthy snacks), Al Foah (the world’s largest dates receiving and processing business), Al Faysal Bakery and Sweets (a leading industrial bakery in Kuwait), Nabil Foods (a Jordan-based leading regional processed meat producer), and Atyab (an Egyptian processed meat producer).

Khalifa Sultan Al Suwaidi, chairman of Agthia Group, said the acquisition of Auf Group aligns with our 2025 growth strategy to acquire, integrate and grow attractive businesses in value-add categories.

"Egypt remains a strategic target for Agthia, as one of the Mena region’s fastest-growing consumer markets. We continue to identify opportunities to grow our presence there while strengthening our F&B leadership in the Middle East and beyond,” he said.

Alan Smith, chief executive officer of Agthia Group, said this is an important acquisition for Agthia that further expands our footprint in the snacking and healthy food verticals.

"We look forward to integrating Auf Group as part of Agthia while monetizing synergies and growth opportunities. We are also excited to expand our presence in Egypt and look forward to working closely with the Auf Group team to bolster their strengths and capabilities,” he said.

Agthia has acquired 60 per cent of Auf Group, with Auf Group’s founders retaining a 30 per ent stake and continuing to actively lead the company with the support of Agthia’s regional footprint and operational expertise. Tanmiya Capital Ventures, an Egyptian private equity firm that invested in Auf Group in 2019, remains a shareholder of the remaining 10% stake.

Ahmed Auf, chief executive officer of Auf Group, said this transaction represents a significant milestone in Auf Group’s history, and we look forward to working alongside the Agthia team to build on our success to date.

"Our focus remains on maintaining our unique position in the Egyptian snacking market while expanding our reach and footprint,” he said.

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 master brand. The company has plans to expand its footprint across the UAE, and beyond, having recently opened four new stores in key retail locations - including a flagship store in the newly opened Dubai Hills Mall.

Freshfields Bruckhaus Deringer LLP acted as international legal counsel, and Matouk Bassiouny & Hennawy as Egyptian counsel, to Agthia. CI Capital acted as financial advisor to Agthia.

— muzaffarrizvi@khaleejtimes.com


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