UAE F&B group Agthia is eyeing entry into the processed meat protein sector with an acquisition of Jordanian company Nabil Foods.
Agthia said in a statement on Tuesday (Jan 19) that it is seeking to acquire an indirect stake of 80% in Nabil Foods. This includes a 60% stake from ADQ in exchange for a convertible instrument and a further 20% stake from Ideal Holding Limited. ADQ was formerly known as Abu Dhabi Developmental Holding Company.
The fixed price at which the instrument will convert into shares in Agthia is 5.50 dirhams per share, which would give it an equity value of 394 million dirhams ($107.28 million) for a 60% stake in Nabil Foods.
Agthia said its acquisition will give it access to new revenue streams and expansion into the regional frozen and chilled processed meat sector. It is currently behind household brands in 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).
“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," said Agthia CEO Alan Smith.
Nabil Foods’ product portfolio is 100% halal and its raw materials are free from Genetically Modified Organisms with no additives, according to Agthia and Nabil’s website. It produces products such as burger patties, chicken nuggets, and ready meals such as lasagne and chicken shawarma.
The Amman-based company has a processing capacity of 43,000 tons annually and a range of over 600 individual product lines. It has nine production lines, pushing out up to 200,000 packs of finished products per day and supplying over 500 restaurants in the Middle East. It has distribution facilities in 20 international markets and its clients are in diverse sectors including food catering, hotels, restaurants, healthcare, schools, airline segments, and retail outlets.
For the 12 months ending Sep 30, Nabil earned revenues of 365 million dirhams, EBITDA of 70 million dirhams and net income of 32 million dirhams, according to Agthia.
The Abu Dhabi company’s acquisition of Nabil Foods is subject to regulatory and shareholders’ approvals.
Agthia is 51% owned by the government of Abu Dhabi’s industrial investment holding company Senaat, which in turn is owned by ADQ. Outside its home market of the UAE, Agthia has subsidiary operations in Egypt, Turkey, Oman, Saudi Arabia and Kuwait.
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