Agthia Group, one of the region’s leading food and beverage companies, on Thursday announced its acquisition of 60 percent of Auf Group, a specialised healthy snacks and coffee manufacturer and retailer in Egypt.
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 sold under the ‘Abu Auf’ masterbrand.
The transaction provides Agthia with a footprint in the attractive Egyptian snacking market and, together with last year’s acquisition of leading processed meat producer Atyab, facilitates the establishment of Agthia as a major player in the Egyptian consumer packaged goods industry.
The deal builds on Agthia’s acquisitions of the GCC’s snacks and food company, BMB Group, and the Al Foah dates business.
“As part of our strategy to stimulate growth and enhance our operations, we are focused on expanding Agthia’s footprint in the MENAP region,” Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said. “The acquisition of Auf Group is a compelling opportunity to bolster our delivery of this commitment, while further penetrating one of the region’s fastest-growing consumer markets”.
Sultan Al Suwaidi added that Auf Group will accelerate Agthia’s strong growth trajectory following a record first quarter in 2022.
During the last twelve months ending December 31, 2021, Auf Group generated total net revenue of around AED236 million and EBITDA of approximately AED58 million, with healthy EBITDA margins of 25 percent.
The Auf Group’s founders will retain a combined stake of 30 percent in the business and continue to lead the company with the full backing of Agthia’s regional footprint and operational support.
Tanmiya Capital Ventures, an Egyptian private equity firm which invested in Auf Group in 2019, also remains a committed shareholder with a 10 percent stake.
