Abu Dhabi: Agthia Group PJSC, the leading food and beverages company, Wednesday announced that its Board of Directors has approved a strategic acquisition of a majority stake in Ismailia Investments (Atyab), an 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 tons per year through its facilities and production lines, including a 60,000 sqm manufacturing facility.
“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,” said Khalifa Sultan Al Suwaidi, Chairman of Agthia Group.
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.
“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,” said Alan Smith, Chief Executive Officer of Agthia Group.
There are significant cost, revenue synergies and enhanced distribution capabilities Agthia in Egypt.
This acquisition would also further cement the strategic partnership between the UAE and Egypt,” said Attito Raslan, Chairman and Chief Executive Officer of Atyab
Agthia Group was established in the UAE in 2004 and listed on the Abu Dhabi Securities Exchange (ADX) in 2005.The acquisition is subject to obtaining customary closing conditions, including relevant regulatory approvals.