Agthia Group, a leading food and beverages company, today (April 7) announced that its Board of Directors has approved a strategic acquisition of a majority stake in Ismailia Investments (Atyab), a prestigious Egyptian producer of frozen processed chicken and beef products.
Ismailia Investments has a portfolio of four brands – Atyab, Meatland, Shiketita and Furat – catering to the value, economy and premium segments of the Egyptian market. It has a processing capacity of around 70,000 tonnes per year through its facilities and production lines, including a 60,000 sq m manufacturing facility. The company has achieved strong revenue growth with around 28% CAGR between 2016 and 2020, with healthy EBITDA margins of around 19% as of 2020. In 2020, the company achieved net revenues of AED 424 million ($115.45 million) with EBITDA of AED 79 million. It has more than 2,500 employees and 11 distribution centers spread across Egypt.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said: “This acquisition is a continuation of our strategy to position Agthia as the leading FMCG player in the MENA region. Egypt is a key growth market for Agthia, and Atyab operates in a sector that is fast-growing and attractive. We are confident that this transaction will create new opportunities for Agthia and deliver enhanced value for our shareholders.”
Alan Smith, Chief Executive Officer of Agthia Group, said: “The proposed acquisition of Atyab presents a significant opportunity for Agthia to expand in the processed protein sector following our recent announcement of Board approval to acquire Nabil Foods. The transaction would place Agthia at the forefront of a growing sector in one of the MENA region’s fastest-growing economies, providing access to around 100 million new consumers characterized by a wide youth segment and rising income. Furthermore, there are significant cost, revenue synergies and enhanced distribution capabilities that we will be able to capitalize on by adding Atyab to our existing Egyptian operations.”
Attito Raslan, Chairman and Chief Executive Officer of Atyab, said: “We are delighted at the prospect of becoming part of Agthia and see this acquisition as a great opportunity to further accelerate our growth, strengthen our leadership position in Egypt and expand our reach into new markets. This acquisition would also further cement the strategic partnership between the UAE and Egypt.”
It is expected that the transaction would drive tangible immediate and long-term value for Agthia shareholders with significant cost and revenue synergies enabling expansion in value-added retail products and cross-market distribution.
The acquisition would see Agthia acquiring a majority stake of 75.02% in Ismailia Investments. The founder, industry veteran and Atyab leader Attito Raslan, would retain a stake in the company and build on his successful track record of growing the business with the backing of Agthia’s financial strength, wide regional reach and industry expertise.
Agthia Group was established in the UAE in 2004 and listed on the Abu Dhabi Securities Exchange (ADX) in 2005. Agthia is a regional player in four major categories, including dates, water, flour and animal feed.---TradeArabia News Service