The acquisition will be another step towards cementing Agthia’s position as a leading regional FMCG player with further access to new markets, distributors, and customers
Agthia Group, a UAE-based food and beverages company, has announced the strategic acquisition of a majority stake in Nabil Foods, regional producers of frozen and chilled processed protein products distributed in more than 20 local and international markets.
Nabil Foods has a processing capacity of 43,000 tons per year and a range of over 600 individual product lines. The transaction is subject to obtaining certain regulatory and shareholders’ approvals and executing transaction documents.
The acquisition would represent Agthia’s first entry into processed protein through a well-established brand with a successful track record of over 75 years, placing Agthia at the forefront of a fast-growing industry. Through Nabil Foods, Agthia would have immediate access to new revenue streams as well as the opportunity to expand its product offering into the regional frozen and chilled processed meat sector. Nabil Foods’ product portfolio is 100 per cent Halal and distributed to major clients through a number of channels including retail, restaurants and catering.
It is expected that the acquisition of Nabil Foods would drive tangible short- and long-term value for all stakeholders with cost and revenue synergy opportunities from the integration of the combined platform enabling footprint expansion in value-added retail products and cross-market distribution across the region.
The acquisition would see Agthia acquiring an indirect stake of 80 per cent in Nabil Foods, including a 60 per cent stake from ADQ in exchange for a convertible instrument and a further 20 per cent stake from Ideal Holding. The fixed price at which the instrument will convert into shares in Agthia is Dh5.50 per share, implying an equity value of Dh394 million for a 60 per cent stake in Nabil Foods.
Alan Smith, CEO of Agthia Group, said: “As we continue to expand into new profitable business lines in the food and beverage industry, our vision is to cement Agthia’s position as a mark of quality in the region while fueling product innovation in the sector.
“The acquisition of Nabil Foods, once completed, would represent another step towards meeting our ambitions; it would be an accretive acquisition for both the business and our shareholders, an expansion into a growing sector with high-quality product offerings and a mutual commitment to innovation aligned with evolving consumer trends. Agthia’s balance sheet will be further strengthened and capitalized following completion of this acquisition, which will enable the company to continue to pursue its growth strategy,” he said.