The acquisition of the stake will enhance Agthia’s footprint in the Egyptian snacking market, which is forecast to grow to around Dh11.2 billion by the end of 2024. Image Credit: Supplied

Food and beverage company Agthia Group announced the completion of its acquisition of a 60 per cent stake in Egypt’s Auf Group on Wednesday.

The acquisition of the stake in Auf, a specialised healthy snacks and coffee manufacturer and retailer, will enhance Agthia’s footprint in the Egyptian snacking market, which is forecast to grow from around Dh8.7 billion in 2020 to around Dh11.2 billion by the end of 2024, according to Euromonitor.

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

After the transaction, Auf Group’s founders will retain a 30 per cent stake and continue to actively lead the company. Tanmiya Capital Ventures, an Egyptian private equity firm that invested in Auf Group in 2019, will remain a 10 per cent shareholder.

The transaction also strengthens Agthia’s position as a regional consumer packaged goods (CPG) company, building on last year’s acquisitions of BMB Group, a leading manufacturer of healthy snacks, Al Foah, a dates receiving and processing business, Al Faysal Bakery and Sweets, an industrial bakery in Kuwait, Nabil Foods, a Jordan-based processed meat producer, and Atyab, an Egyptian processed meat producer.

Alan Smith, CEO of Agthia Group, said: “This is an important acquisition for Agthia that further expands our footprint in the snacking and healthy food verticals. We look forward to integrating Auf Group as part of Agthia while monetising 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 bolster their strengths and capabilities.”

Ahmed Auf, CEO of Auf Group, said: “This transaction represents a significant milestone in Auf Group’s history, and we look forward to working alongside the Agthia team to build on our success to date. Our focus remains on maintaining our unique position in the Egyptian snacking market while expanding our reach and footprint.”

Established in 2010, Auf Group processes, manufactures, retails and distributes a broad portfolio of products across Egypt including coffee, nuts, healthy snacks and other confectionery products.