UAE manufacturing giant Agthia Group to acquire majority stake in Egyptian meat processor Atyab

EGYPT – Abu Dhabi-listed food and beverage company Agthia Group has announced that its Board of Directors has approved a strategic acquisition of a majority stake in Ismailia Investments (Atyab), Egyptian producer of frozen processed chicken and beef products.

The acquisition would see Agthia acquiring 75.02% in Ismailia Investments, giving it an enterprise value of 3.22 billion Egyptian pounds (US$205.6 million).

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, Agthia noted in a statement.

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.

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“We are delighted at the prospect of becoming part of Agthia and see this acquisition as a great opportunity to further accelerate our growth, strengthen our leadership position in Egypt and expand our reach into new markets.”

Attito Raslan – Chairman and Chief Executive Officer of Atyab

The company has achieved strong revenue growth with around 28% CAGR between 2016 and 2020, with healthy EBITDA margins of around 19% as of 2020.

In 2020, it attained net revenues of AED 424 million (US$115.4m) with EBITDA of AED 79 million (US$21.5m). It has more than 2,500 employees and 11 distribution centres spread across Egypt.

“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,” Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said.

Two wholly-owned units of Agthia will be incorporated as private limited companies with nominal share capital in the Abu Dhabi Global Market and used as acquisition vehicles for the transaction.

The acquisition is subject to obtaining customary closing conditions, including relevant regulatory approvals.

Freshfields Bruckhaus Deringer LLP is acting as international legal counsel, and Matouk Bassiouny & Hennawy as Egyptian legal counsel, to Agthia. EFG Hermes is acting as financial advisor to Agthia.

First Capital Financial Advisory is acting as a financial advisor to the shareholders of Atyab. Adsero Ragy Soliman & Partners is acting as legal counsel to the shareholders of Atyab.

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“We are delighted at the prospect of becoming part of Agthia and see this acquisition as a great opportunity to further accelerate our growth, strengthen our leadership position in Egypt and expand our reach into new markets.

“This acquisition would also further cement the strategic partnership between the UAE and Egypt,” Attito Raslan, Chairman and Chief Executive Officer of Atyab, said.

The founder and industry veteran 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.

Established in 2004 in the UAE, Agthia is a regional champion in four major categories, including dates, water, flour and animal feed.

The company has made a series of acquisitions recently, as it seeks to become a big player in the region’s food and beverage industry.

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