• The acquisition would be another step towards cementing Agthia’s position as a leading regional FMCG player with further access to new markets, distributors and customers
  • The acquisition would add new revenue streams, significant cross-selling opportunities and potential synergies for the overall Group further enhancing the group’s profitability
  • Proceeding with the acquisition is subject to obtaining a fairness opinion from an independent valuer, and obtaining regulatory and shareholders’ approvals

Abu Dhabi, UAE – Agthia Group PJSC, a leading UAE-based food and beverages company, today announced that its Board of Directors approved a strategic acquisition of a majority stake in Nabil Foods, one of the leading regional producers of frozen and chilled processed protein products distributed in more than 20 local and international markets. Nabil Foods has a processing capacity of 43,000 tons per year and a range of over 600 individual product lines. The transaction is subject to obtaining certain regulatory and shareholders’ approvals and executing transaction documents.

The acquisition would represent Agthia’s first entry into processed protein through a well-established brand with a successful track record of over 75 years, placing Agthia at the forefront of a fast-growing industry. Through Nabil Foods, Agthia would have immediate access to new revenue streams as well as the opportunity to expand its product offering into the regional frozen and chilled processed meat sector. Nabil Foods’ product portfolio is 100% Halal and distributed to major clients through a number of channels including retail, restaurants and catering.

It is expected that the acquisition of Nabil Foods would drive tangible short- and long-term value for all stakeholders with cost and revenue synergy opportunities from the integration of the combined platform enabling footprint expansion in value-added retail products and cross-market distribution across the region.

Nabil Foods is a sector leader in research and development, pioneering product innovations and following consumer preferences such as plant-based proteins. These capabilities would complement Agthia’s research and development efforts, unlocking opportunities to develop new by-products with higher margins.

During the Last Twelve Months (LTM) ending September 30, 2020, Nabil Foods achieved revenues of AED 365 million, EBITDA of AED 70 million, and net income of AED 32 million.

The acquisition would see Agthia acquiring an indirect stake of 80% in Nabil Foods, including a 60% stake from ADQ in exchange for a convertible instrument and a further 20% stake from Ideal Holding Limited. The fixed price at which the instrument will convert into shares in Agthia is AED 5.50 per share, implying an equity value of AED 394 million for a 60% stake in Nabil Foods.

Alan Smith, Chief Executive Officer of Agthia Group, said: “As we continue to expand into new profitable business lines in the food and beverage industry, our vision is to cement Agthia’s position as a mark of quality in the region while fueling product innovation in the sector.

“The acquisition of Nabil Foods, once completed, would represent another step towards meeting our ambitions; it would be an accretive acquisition for both the business and our shareholders, an expansion into a growing sector with high-quality product offerings and a mutual commitment to innovation aligned with evolving consumer trends. Agthia’s balance sheet will be further strengthened and capitalized following completion of this acquisition, which will enable the company to continue to pursue its growth strategy.”

“The coming period will see us leveraging our stronger portfolio of brands and products to boost revenues, while continuing to seek growth opportunities that align with our strategy and deliver shareholder value.”

Agthia Group was established in the UAE in 2004 and listed on the Abu Dhabi Securities Exchange (ADX) in 2005. It is a leading Abu Dhabi-based food and beverage company and through Senaat, Agthia 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 economy.

Founded in Jordan in 1989, Nabil Foods has nine production lines, producing up to 200,000 packs of finished products per day and supplying over 500 restaurants in the region. It has distribution facilities in 20 international markets for clients in the food catering, hotel, restaurant and quick service restaurants, healthcare, university, school, and airline segments, alongside other retail outlets. Nabil Food's raw materials are free from Genetically Modified Organisms with no additives and all products are 100% Halal.

Rothschild & Co and Freshfields Bruckhaus Deringer are acting as advisers to Agthia.

About 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”. Through Senaat, Agthia 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 and Turkey. Agthia offers a world class portfolio of integrated businesses providing high quality and trusted food and beverage products for customers and consumers across the UAE, GCC, Turkey and the wider Middle East. More than 4,000 employees are engaged in manufacturing, distribution and marketing various food and beverage products, namely: Water (Al Ain, Al Ain Zero, Al Bayan, Alpin Natural Spring Water, Bambini); Flour (Grand Mills); Animal Feed (Agrivita); Juices (Al Ain Fresh); Dairy (Yoplait); Processed Food (Al Ain Tomato Paste, Frozen Vegetable); and Ambient and Frozen Bakery (Grand Mills). For more information: www.agthia.com | corpcoms@agthia.com | Tel: 971 2 506 0600.

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