Agthia Group to acquire 60% stake in Egyptian snacking firm Auf Group
Agthia Group, an Abu Dhabi-based food and beverage company, revealed plans to acquire a stake of 60% in Auf Group, an Egyptian specialized healthy snacks and coffee manufacturer and retailer.
The financial terms of the deal were not disclosed.
Founded in 2010, Auf Group is engaged in processing, manufacturing, retailing and distributing a portfolio of products in Egypt. These include coffee, healthy snacks, nuts, and other confectionery products, which are sold under the Abu Auf master brand.
The founders of Auf Group will retain a 30% stake in the company and continue to lead it. The remaining 10% stake in the Egyptian snacking firm is held by private equity firm Tanmiya Capital Ventures.
Ahmed Auf — Auf Group CEO said: “Auf Group has grown substantially in Egypt since its foundation in 2010, with consistent investment in corporate infrastructure and human capital enabling us to build a distinguished brand and remain at the forefront of the local healthy snacks market.
“Following our partnership with an institutional investor in 2019 to further accelerate growth and institutionalize the company, we believe we are now ready for the next step in our journey.”
According to Agthia Group, the deal gives it a presence in the attractive Egyptian snacking market and along with its 2021 acquisition of processed meat producer Atyab will help it become an important player in the Egyptian consumer packaged goods industry.
The acquisition also builds on Agthia’s 2021 acquisitions of GCC’s healthy snacks and food company — BMB Group and the dates business of Al Foah.
Alan Smith — Agthia Group CEO said: “Auf Group is an important strategic target for Agthia to boost growth in our snacking and healthy food verticals, as we continue to adopt a more consumer-centric business model.
“In addition to immediate access to new revenue streams and product lines, we are excited to expand our presence in Egypt and utilize the acquisitions made last year to further strengthen our operations and market revenue base.”
The closing of the deal is subject to regulatory approvals and other customary conditions.