Agthia completes acquisition of Egyptian meat processor Atyab

The company will continue to pursue new 'scalable opportunities' to boost growth, chief executive says

Agthia, the food and beverage company that produces Al Ain water, has completed the acquisition of Egyptian meat processor Atyab. Delores Johnson / The National

Food and beverages company Agthia completed the acquisition of a majority stake in Egypt-based meat processor Ismailia Investments, also known as Atyab, as it continues to expand its portfolio to boost growth.

The Abu Dhabi company has a 75.02 per cent share in Ismailia Investments following the deal, while its founder and industry veteran, Attito Raslan, will retain a stake in the company, Agthia said in a statement on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded. It did not disclose the total value of the deal.

“The acquisition will enable Agthia to quickly benefit from new revenue streams, cost and revenue synergy opportunities ... expanded product offerings and enhanced financial performance and profitability,” the company said.

Cairo-based Atyab makes frozen chicken and beef products and has a portfolio of four brands catering to the economy and premium segments of the Egyptian market.

The company, which has the capacity to process 70,000 tonnes of meat per year through its various facilities, has achieved a 28 per cent compound annual growth rate between 2016 and 2020. Revenue for 2020 stood at Dh424 million ($115.45m) and earnings before interest, tax, depreciation and amortisation at Dh79m.

Agthia, which is owned by Abu Dhabi's state holding company ADQ, has acquired various complementary businesses in recent months as it vies to become a leading regional player in the food and beverage industry.

Deals have included the purchase of Kuwait's Al Faysal Bakery and Sweets, snacks maker BMB Group, Jordan's Nabil Foods and the world's largest date processing and packaging company, Al Foah.

“At Agthia, we are continuing to actively pursue new, scalable opportunities as part of our strategy to establish the company as a food and beverage leader in the Mena region and beyond by 2025,” Alan Smith, chief executive of Agthia Group, said.

Agthia reported a 17.5 per cent increase in second-quarter net profit this year as acquisitions boosted revenue. Net income for the three months to the end of June climbed to Dh18.33m from the same period a year earlier, while revenue grew 26 per cent to Dh652.84m.

Mr Raslan, who is retaining a stake in Atyab, will "build on his successful track record of growing the business with the backing of Agthia’s financial strength, wide regional reach and industry expertise", the company said.

Egypt was one of the few emerging market countries that experienced growth in 2020, according to the International Monetary Fund.

It expects real gross domestic product growth to increase by 5.2 per cent in the 2021-2022 fiscal year, up from 2.8 per cent in the previous fiscal year.