Agthia completes acquisition of majority stake in Egyptian healthy snacks and coffee company Auf Group

  • Acquisition expands Agthia’s position as the leading CPG company in the region
  • Agthia’s established distribution network to accelerate the international growth of Auf Group

Abu Dhabi, UAE: – Agthia Group PJSC, one of the region’s leading food and beverage companies, today announced the completion of the acquisition of a 60% stake in Auf Group, a manufacturer and specialty retailer of healthy snacks and coffee. in Egypt.

The acquisition enhances Agthia’s presence in the attractive Egyptian snack 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 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 date processing and receiving business largest in the world), Al Faysal Bakery and Sweets (a leading industrial bakery in Kuwait), Nabil Foods (a leading regional producer of processed meat based in Jordan) and Atyab (an Egyptian producer of processed meat).

Khalifa Sultan Al Suwaidi, Chairman of the Agthia Group, said: “The acquisition of Auf Group aligns with our 2025 growth strategy to acquire, integrate and grow attractive businesses in value-added categories. Egypt remains a strategic target for Agthia, as one of the fastest growing consumer markets in the MENA region. We continue to identify opportunities to grow our presence there while strengthening our F&B leadership in the Middle East and beyond.”

Alan Smith, CEO of Agthia Group, said: “This is an important acquisition for Agthia that further expands our presence in the snack and health food verticals. We look forward to integrating Auf Group as part of Agthia while monetizing the 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 reinforce their strengths and capabilities.”

Agthia has acquired 60% of Auf Group, and the founders of Auf Group retain a 30% stake and continue to actively lead the business supported by Agthia’s regional presence and operating experience. Tanmiya Capital Ventures, an Egyptian private equity firm that invested in Auf Group in 2019, remains a shareholder in the remaining 10%.

Ahmed Auf, CEO of Auf Group, said: “This transaction represents an important milestone in the history of Auf Group, and we look forward to working together with the Agthia team to build on our success to date. Our focus remains on maintaining our unique position in the Egyptian snack market while expanding our reach and presence.”

Established in 2010, Auf Group processes, manufactures, retails and distributes a broad portfolio of products throughout Egypt, including coffee, nuts, healthy snacks and other confectionery products sold under the Abu-Auf master brand. The company has plans to expand its presence in the United Arab Emirates 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 legal counsel to Agthia. CI Capital acted as financial advisor to Agthia.

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About Agthia

Agthia Group is a leading food and beverage company based in Abu Dhabi. Established in 2004, the Company is listed on the Abu Dhabi Stock Exchange (ADX) and carries the symbol “AGTHIA”. Agthia Group PJSC is part of ADQ, one of the largest holding companies in the region with a broad portfolio of major companies spanning key sectors of Abu Dhabi’s diversified economy.

The Company’s assets are located in the United Arab Emirates, Saudi Arabia, Kuwait, Oman, Egypt, Turkey and Jordan. Agthia offers a world-class portfolio of integrated businesses that provide high-quality, reliable food and beverage products to consumers in the UAE, GCC, Turkey and the broader Middle East. More than 9,300 employees are dedicated to the manufacture, distribution and marketing of 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 Trade Items);Afternoon snack (Al Foah, Yoplait, Al Faysal Bakery & Sweets, BMB);Proteins and Frozen (Nabil Foods, Atyab, Al Ain Frozen Vegetables); YAgribusiness(Grand Mills, Agrivita).

For more information, visit www.agthia.com or email us at [email protected]

About Auf Group

Auf Group is a specialty coffee and healthy snack manufacturer and specialty retailer headquartered in Egypt with a presence in the United Arab Emirates and the Netherlands. The company employs more than 1,900 people. It currently operates more than 220 outlets in Egypt (106 brand stores and 115 in-store outlets) with nationwide distribution reaching around 22,000 outlets in 26 Egyptian governorates. In addition, the company recently opened four outlets in the United Arab Emirates as part of its strategic geographic expansion.

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