Agthia Group completed the acquisition of a 60% stake in Auf Group, an Egypt-based healthy snacks and coffee manufacturer as well as retailer, for an initial price of up to EGP 2.92 billion.
The acquisition boosts Agthia’s position as a leading regional consumer packaged goods (CPG) company and strengthens its footprint in the Egyptian market, according to a recent press release.
Auf Group’s founders will hold a 30% stake in the business, while Tanmiya Capital Ventures, an Egyptian private equity firm that invested in the acquired group in 2019, will own the remaining 10% equity.
According to Euromonitor, the Egyptian snacking market is expected to enlarge to nearly AED 11.20 billion ($3.05 billion) by the end of 2024 from about AED 8.70 billion ($2.30 billion) in 2020.
It is worth noting that Agthia’s board granted its approval for the takeover process last July.
The transaction aligns with the ADX-listed firm’s previous acquisitions that were announced in 2021, including Egypt-based Ismailia Investments (Atyab), Dubai-based BMB Group, Joran’s Nabil Foods, Abu Dhabi-based packaging company Al Foah, and Kuwait’s Al Faysal Bakery and Sweets.
Khalifa Sultan Al Suwaidi, Chairman of Agthia, 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.
Alan Smith, CEO of Agthia, commented: “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 monetising synergies and growth opportunities.”
Smith added: “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.”
Ahmed Auf, CEO of Auf Group, noted: “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.”
In the first nine months (9M) of 2022, the ADX-listed company recorded a growth in net profit attributable to the owners to AED 158.55 million, versus AED 103.29 million in 9M-21.
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