Agthia's board of directors agrees to acquire 60% of Egypt's Auf

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Agthia Group, specialized in the field of food and beverages, announced that its board of directors agreed to proceed with the strategic acquisition of a 60% stake in Aouf Group, one of the largest companies specialized in manufacturing and selling coffee products and healthy snacks in Egypt.

"Auf" group

A statement stated that the Aouf Group was established in 2010, and it processes, manufactures, sells and distributes a variety of products across Egypt, including coffee, nuts, healthy snacks and sweets, all of which are sold under the Abu Auf brand.

The statement stressed that this deal will contribute to strengthening Agthia's presence in the snack food market in Egypt, and enhancing its position in the canned consumer goods sector, especially after it established a strong presence there last year by acquiring the "Atyab" company working in the field of meat production. and frozen poultry.

business promotion

According to the statement, the acquisition reflects Agthia's commitment to strengthening its business and diversifying the products of the consumer business division, at a time when the deal comes as a continuation of Agthia's acquisition last year of the BMB Group operating in the field of healthy snacks and innovative foods in the GCC countries. Gulf Cooperation Council, and the “Al Foah Dates Company”, which will enhance Agthia’s presence in the market in terms of product categories and distribution channels.

"Food" strategy

Agthia Group Chairman Khalifa Sultan Al Suwaidi said: “Our focus is on expanding Agthia’s presence and strengthening its position in the Middle East, North Africa and Pakistan, as part of our strategy to promote growth and improve the efficiency of our operations.”

Al-Suwaidi added: “The acquisition of the Auf Group represents an important opportunity to achieve this, as it contributes to consolidating our presence in one of the fastest growing consumer markets in the region. We are confident that the Auf Group will support Agthia’s growth journey now and in the future. Especially after the record performance achieved by (Agthia) in the first quarter of 2022.”

Focus on the consumer

For his part, the CEO of Agthia Group, Alan Smith, said that the acquisition of Auf Group is an important strategic step for Agthia, because of its importance in promoting the growth of the group's snacks and healthy foods categories, as we continue to work on Building a more consumer-centric business model.

He added, “In addition to the benefits of this transaction in rapidly creating new revenue streams and product lines, we are also excited to expand our presence in Egypt, and to complete the acquisitions we made last year, with the aim of strengthening our operations and expanding our revenue base.”

sustainable growth

In the same context, the CEO of Aouf Group, Ahmed Auf, said that the group has witnessed significant and sustainable growth in Egypt since its establishment in 2010, and has invested continuously in institutional infrastructure and human capital, which contributed to building a distinctive brand and maintaining On its lead in the healthy snacks market in Egypt.

financial results

According to the statement, the Aouf Group recorded, during the past 12 months period ending on December 31, 2021, total revenues of approximately 236 million dirhams, and profits before interest, taxes, depreciation and amortization of about 58 million dirhams, while EBITDA margins amounted to approximately AED 58 million. The amortization of the debt is 25%.

Details of the transaction

The deal will be represented in Agthia's acquisition of a 60% stake in the Auf Group, with the founders of Auf retaining a total stake of 30%, and their continuing to lead the group by benefiting from the regional presence and operational support of the Agthia Group.

In turn, Tanmia Capital Ventures, an Egyptian private equity investment company, will retain the remaining 10% stake in Aouf Group, which it acquired in 2019.

Completion of the acquisition will be subject to obtaining the necessary approvals from the regulatory authorities and completing all required regulatory documents.

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