- The transaction follows several M&A deals the Firm advised on in the region this year, reinforcing its position as the leading M&A house in the region
Cairo and Abu Dhabi: EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today that its Investment Banking division successfully closed on the sale of a 60% stake in Auf Group to leading Emirati food company Agthia. EFG Hermes acted as sole sell-side financial advisor to Auf Group on the transaction.
The deal allows Auf Group to benefit from Agthia’s regional platform in the GCC with respect to its geographic expansion plan, while at the same time expanding its capabilities in the high growing Egyptian food and beverage market. Following the transaction, the company’s three founders will retain a combined 30% stake and Tanmiya Capital Ventures (TCV) a 10% stake.
Maged El Ayouti, Managing Director and Deputy Head of EFG Hermes’ Investment Banking division, said: “We are incredibly proud to have been part of this notable transaction for Auf Group — a renowned fast-growing Egyptian brand. Over the cycle, investors’ appetite to pursue high-growth investment opportunities that are value accretive continues to remain intact. We are pleased to have contributed to this homegrown brand’s exceptional growth story and taking it to a new chapter as we work to continue attracting global capital to compelling local opportunities.”
The local food and beverages industry boasts strong fundaments with a substantial consumer base and considerable growth, making homegrown super brands such as Auf Group attractive for global investors looking for sustainable high returns.
Established in 2010, Auf Group is a leading Egyptian brand that processes, manufactures, retails, and distributes a broad range of healthy snacks, coffee, nuts, and other confectionery products sold under the Masterbrand "Abu Auf.” The company boasts a sizeable direct consumer channel in the Egyptian market. It operates over 200 outlets in addition to a country-wide distribution reaching more than 20,000 points of sale in 26 Egyptian governorates. More recently, Auf Group has expanded its operations to the UAE, establishing four new stores in key retail locations in Dubai.
This transaction capitalizes on the Firm’s M&A expertise in the region and the F&B sector particularly, having advised on several F&B assignments in the region, including Agthia’s acquisition of Egyptian meat processing company Atyab, acquisition of Kuwait's Al Faysal Bakery and Sweets, and acquisition of UAE's health snacks company, BMB Group. The transaction also comes on the heels of a series of landmark M&A deals the Firm has advised on in Egypt and the GCC in 2022, including UAE-based AD Ports’ USD 140 million acquisition of Egypt’s Transmar International Shipping Company (Transmar) and Transcargo International (TCI), and our advisory to the Public Investment Fund of Saudi Arabia (PIF) on the acquisition of a minority stake in B.Tech.
About EFG Hermes Holding
With a current footprint spanning 14 countries across four continents, EFG Hermes Holding (EGX: HRHO.CA – LSE: EFGD) has grown over 38 years of success to transform from a pure-play investment bank in MENA into an impact-driven universal bank in Egypt with the leading investment bank franchise in Frontier and Emerging Markets (FEM). Drawing on our proven track-record and a diverse team of talented employees, we provide a broad spectrum of financial services, including advisory, asset management, securities brokerage, research, and private equity, to the entire FEM region. In our home country, we have the fastest-growing non-bank financial institutions (NBFI) platform, with operations covering microfinance, leasing, factoring, Buy-Now Pay-Later (BNPL), digital payment solutions, mortgage finance, and insurance.
And with its latest acquisition of a majority stake in aiBANK, the Firm was able to provide commercial banking products and services.
Through its three verticals, the Investment Bank, Non-Bank Financial Institutions (NBFI), and Commercial Bank, the group is perfectly positioned to consistently bring disruptive financial products and services to the market space, offering a holistic portfolio that best serves its growing base of individual clients and businesses of all sizes.
Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Oman | Jordan | Pakistan | UK | Kenya | USA | Bangladesh | Nigeria | Vietnam | Singapore
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May El Gammal
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Note on Forward-Looking Statements
In this press release, EFG Hermes Holding may make forward looking statements, including, for example, statements about management’s expectations, strategic objectives, growth opportunities, and business prospects. These forward-looking statements are not historical facts but instead represent only EFG Hermes Holding’s belief regarding future events, many of which, by their nature, are inherently uncertain and are beyond management’s control and include, among others, financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending and future legislation, regulations, and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made.