UAE – Auf Group, a specialised healthy snacks maker, coffee manufacturer and retailer in Egypt, has sold its majority stake – 60% to Agthia Group PJSC, a food and beverage company serving the wider Middle East.
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 master brand.
The company has plans to expand its footprint across the UAE, and beyond, having recently opened four new stores in key retail locations – including a flagship store in the newly opened Dubai Hills Mall.
Ahmed Auf, Chief Executive Officer 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.
2Our focus remains on maintaining our unique position in the Egyptian snacking market while expanding our reach and footprint.”
Agthia has acquired 60% of Auf Group, with Auf Group’s founders retaining a 30% stake and continuing to actively lead the company with the support of Agthia’s regional footprint and operational expertise.
The remaining 10% stake is held by Tanmiya Capital Ventures, an Egyptian private equity firm that invested in Auf Group in 2019.
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.”
The acquisition of the stake is set to enhances Agthia’s footprint in the attractive Egyptian snacking market, which is forecast to grow from around AED 8.7 billion (US$2.3 billion) in 2020 to around AED 11.2 billion (US$3.05 billion) by the end of 2024, according to Euromonitor.
It will also strengthen Agthia’s position as a leading regional consumer packaged goods (CPG) company, building on last year’s acquisitions of BMB Group (a leading manufacturer of healthy snacks), Al Foah (the world’s largest dates receiving and processing business), Al Faysal Bakery and Sweets (a leading industrial bakery in Kuwait), Nabil Foods (a Jordan-based leading regional processed meat producer), and Atyab (an Egyptian processed meat producer).
Alan Smith, Chief Executive Officer 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 monetizing 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.”
Freshfields Bruckhaus Deringer LLP acted as international legal counsel, and Matouk Bassiouny & Hennawy as Egyptian counsel, to Agthia. CI Capital acted as financial advisor to Agthia.