Agthia, located in Abu Dhabi, has bought a 60 percent ownership in the Egyptian snack company Auf

One of the major beverage and food companies, Agthia Group PJSC has declared the possession of 60% equity stake in Atuf Group, a retailer specialising in coffee and healthy snacks manufacturing in Egypt. Atuf Group is established in the year 2010, with extensive product portfolios in retailing, manufacturing, processing, and distributing throughout Egypt. The range of its products include healthy snacks, nuts, coffee, other confectionery products and advertised under the ‘Abu Auf’ masterbrand.
The acquisition, which has been suggested by EFG Hermes’ investment banking division, has been approved by the board of directors of the food and beverage company. The deal will enable Agthia to make a mark in the profitable Egyptian snacking market, and added with the past year’s possession of Atyab, major processed meat producer, it has cleared the way for the foundation of Agthia as a leading player in the Egyptian consumer packaged goods market.
It will help building the past year’s acquisitions of the BMB Group, also the dates business of Al Foah, serving to strengthen the channel portfolio and market category of Agthia. According to the chairman of the group, Khalifa Sultan Al Suwaidi, the focus of the company was in extending its steps in the MENAP region and the acquisition reflected this plan.
“The possession of Auf Group, is an enthralling opportunity to strengthen our offerings of this commitment while also extending one of the fastest growing consumer markets in the region. Auf Group will quicken the strong growth route of Agthia both currently and in the future”, according to Al Suwaidi.
According to the chief executive officer of the Agthia Group, Alan Smith, the acquisition is going to support the company to extend its presence in Egypt, apart from offering access to new product lines and sources of revenue.
According to Ahmed Auf, chief executive officer of Auf Group, the company has expanded significantly in Egypt since its founding in 2010, and consistent investments in human capital and corporate infrastructure have allowed it to create a distinctive brand and hold a leading position in the local market for healthy snacks.
The Auf Group has created an amazing direct-to-consumer retailing channel, a recognisable brand, and an innovative product offering. The deal demonstrates the tremendous interest from renowned international institutional investors in innovative, fast-growing, agile companies in Egypt that can develop both locally and regionally, according to Maged El Ayouti, managing director and deputy head of EFG Hermes’ investment banking division.
Agthia will purchase 60% of Auf Group as part of the deal, but Auf Group’s founders will continue to run the business with full access to Agthia’s operational resources and regional reach, maintaining a combined 30% ownership position in the company.
Tanmiya Capital Ventures, an Egyptian private equity group that made an investment in Auf Group in 2019, will keep its 10% ownership in the business.
Obtaining necessary regulatory permissions is one of the standard closing requirements that must be met for the acquisition.