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The board of directors of Abu Dhabi–based Agthia Group has approved the acquisition of a 100 percent stake in BMB Group, a GCC-wide a healthy snacks company, in a move that gives the food and beverages company new products and access to new markets.
In a statement to the Abu Dhabi Securities Exchange on Wednesday where its stock is listed, Agthia said the acquisition is expected to be fully funded by cash and is "immediately accretive” to its earnings. It didn’t disclose the value of the transaction.
The deal would represent Agthia’s second investment in the snacking and healthy food market, following its acquisition of date company Al Foah earlier this year.
Agthia, which has been on an acquisition spree recently, is acquiring a majority stake in Egypt’s Ismailia Investments, which makes frozen processed chicken and beef products. Earlier it acquired Jordan-based frozen protein products brand Nabil Foods. Last year it acquired Al Faysal Bakery and Sweets Company in Kuwait.
The Dubai-head quartered BMB has a large portfolio of confectionery and healthy food brands including Asateer, Al Qamar, Freakin’ Healthy and Benoit. In the last twelve months (LTM) period ending 30 June 2021, BMB generated total revenues of around 268 million dirhams ($73 million) and EBITDA of approximately 54 million dirhams. It expects the EBITDA margins to grow to around 20 percent this year.
Its acquisition is expected to give Agthia access to an expanded product portfolio and new markets.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said: “Earlier this year, we presented Agthia’s corporate strategy to the public, and outlined our commitment to investing into the fastest growing and profitable segments of the food and beverage space. The acquisition of BMB aligns with that mandate, and will accelerate the footprint of our snacking business, while adding strong brands and capabilities to our portfolio.”
The deal is subject to conditions, including obtaining relevant regulatory approvals. Freshfields Bruckhaus Deringer LLP is acting as legal counsel while EFG Hermes is acting as financial advisor to Agthia.
(Writing by Brinda Darasha; editing by Seban Scaria)
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