The Board of Directors of Agthia Group, one of UAE’s leading food and beverage (F&B) companies, has approved a strategic acquisition of 60 percent of Auf Group, a specialized healthy snacks and coffee manufacturer and retailer in Egypt.
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 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 acquisition also reflects Agthia’s ongoing commitment to strengthening its portfolio and diversification into branded consumer goods. It will build on last year’s acquisitions of the GCC’s leading innovative healthy snacks and food company, BMB Group, and the Al Foah dates business, strengthening Agthia’s market, category, and channel portfolio.
Khalifa Sultan Al Suwaidi Chairman – Agthia Group
“As part of our strategy to stimulate growth and enhance our operations, we are focused on expanding Agthia’s footprint in the MENAP region. 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. Following a record first quarter in 2022, we believe that Auf Group will accelerate Agthia’s strong growth trajectory both now and in the future.”
Mr. Alan Smith, CEO of Agthia Group, said that “Auf Group is an important strategic target for Agthia to boost growth in our snacking and healthy food verticals, as we continue to adopt a more consumer-centric business model. In addition to immediate access to new revenue streams and product lines, we are excited to expand our presence in Egypt and utilize the acquisitions made last year to further strengthen our operations and market revenue base.”
Mr. Ahmed Auf, CEO of Auf Group, stated that “Auf Group has grown substantially in Egypt since its foundation in 2010, with consistent investment in corporate infrastructure and human capital enabling us to build a distinguished brand and remain at the forefront of the local healthy snacks market.”
The transaction will see Agthia acquire 60 percent of Auf Group, while 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 that invested in Auf Group in 2019, also remains a committed shareholder with a 10 percent stake.
