UAE's Agthia completes acquisition of Al Foah to create top 10 F&B company in the region
Al Foah will operate as a strategic business unit within Agthia
Abu Dhabi: Agthia Group PJSC announced the completion of its strategic combination with Al Foah, the world’s largest date processing and packaging company based in Abu Dhabi.
With the integration of Al Foah into Agthia as a strategic business unit, Agthia has instantly become the domestic market leader in four essential food and beverage categories: water, dates, flour, and animal feed, in addition to having a diversified international exposure within the date category.
The transaction – which was first proposed by General Holding Corporation PJSC (Senaat) to the Agthia Board of Directors in October 2020 and received approval from Agthia’s shareholders in November 2020 – saw Senaat transfer Al Foah’s business, excluding its organic date farm in Al Ain, to Agthia in exchange for 120 million new shares through the issuance of a convertible instrument. As a result, Senaat now owns 59.17 per cent of the entire issued share capital of Agthia, up from the 51 per cent it owned before the deal. Senaat is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s economy.
“The successful consolidation of Al Foah’s business has created a true F&B regional powerhouse and an immediate UAE champion in the exciting date market. Agthia has a winning formula which enables us to take advantage of opportunities such as the Al Foah transaction,” said Khalifa Sultan Al Suwaidi, Chairman, Agthia Group and Chief Investment Officer, ADQ.
Diversificatioin and expansion
The company said it has a clear roadmap for growth and diversification of geographies and products, underpinned by a robust balance sheet and intends to seek organic and inorganic growth opportunities.
“With the successful close of this transaction, we have fast-tracked our ambitions to become amongst the top 10 F&B companies in the MENA region. Additionally, as a leader in the global date market, the integration of Al Foah as a strategic business unit of Agthia enables us to immediately become a regional champion and a serious competitor on a global scale in a very promising food category,” said Alan Smith, Chief Executive Officer of Agthia Group.