- Acquisition expands Agthia’s position as a leading regional CPG company
- Agthia’s established distribution network to accelerate Auf Group’s international growth
Abu Dhabi, UAE: – Agthia Group PJSC, one of the region’s leading food and beverage companies, today announced the completion of its acquisition of a 60% 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 AED 8.7 billion ($2.3 billion) in 2020 to around AED 11.2 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.”
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.”
Agthia has acquired 60% of Auf Group, with Auf Group’s founders retaining a 30% 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.”
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.
Agthia Group is a leading Abu Dhabi based food and beverage company. Established in 2004, the Company is listed on the Abu Dhabi Securities Exchange (ADX) and has the symbol “AGTHIA”. Agthia Group PJSC is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.
The Company’s assets are located in the UAE, Saudi Arabia, Kuwait, Oman, Egypt, Turkey and Jordan. Agthia offers a world class portfolio of integrated businesses providing high quality and trusted food and beverage products for consumers across the UAE, GCC, Turkey and the wider Middle East. More than 9,300 employees are engaged in the manufacturing, distribution and marketing various products in categories such as: Consumer Business (Al Ain Water, Al Bayan, Alpin Natural Spring Water, Ice Crystal, VOSS, Al Ain Tomato Paste, Al Ain Trading Items); Snacking (Al Foah, Yoplait, Al Faysal Bakery & Sweets, BMB); Proteins and Frozen (Nabil Foods, Atyab, Al Ain Frozen Vegetables); and Agri Business (Grand Mills, Agrivita).
About Auf Group
Auf Group is a specialised healthy snacks and coffee manufacturer and speciality retailer headquartered in Egypt with presence in UAE and Netherlands. The company employs more than 1,900 staff. It currently operates over 220 outlets in Egypt – 106 branded stores and 115 shop-in-shop outlets – with a country-wide distribution reaching around 22,000 points of sale in 26 governorates in Egypt. In addition, the company recently opened four outlets in the UAE as part of its strategic geographic expansion.
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