Halal Industry

UAE F&B group Agthia continues buying spree with plans for majority stake in Egyptian processed meat producer

Agthia Group has received approval from its board of directors to acquire a 75.02% stake in an Egyptian processed meat producer as the UAE F&B company continues a buying spree.

The Group's chairperson said in a statement on Wednesday (Apr 7) that the company's acquisition of Ismailia Investments is a continuation of its strategy to position Agthia as the leading FMCG player in the MENA region.

Agthia has been on a bit of a spending spree as it seeks growth. Most recently, it acquired Jordanian processed meat company Nabil Foods after it added Kuwait's Al Faysal Bakery to its growing portfolio of companies. 

Its latest target, Ismailia Investments, owns four brands: Atyab, Meatland, Shiketita, and Furat. The Egyptian company registered revenue growth of 28% CAGR between 2016 and 2020 with EBITDA margin of 19% in 2020, said Agthia. Ismailia posted net revenues of 424 million dirhams ($115 million) with EBITDA of 79 million dirhams in 2020. 

Agthia CEO Alan Smith said the purchase of Ismailia Investments will give the Abu Dhabi-based company "significant" cost and revenue synergies as well as "enhanced" distribution capabilities that it can capitalise on for its existing Egyptian operations.

Outside its home market of the UAE, Agthia has subsidiary operations in Egypt, Turkey, Oman, Saudi Arabia and Kuwait.

The Group competes in consumer business selling water, beverages, dairy, tomato paste, frozen vegetables, bakery, trading items, and in agri-business that covers flour and animal feed. It now has a processed meat line with Nabil Foods and will add Ismailia Investments once regulatory approvals are secured.

The UAE company posted 2.06 billion dirhams in revenue and 34.471 million dirhams ($9.39 million) in net profit for 2020, down 74.84% compared to 137.03 million dirhams in 2019.

© SalaamGateway.com 2021 All Rights Reserved