Abu Dhabi-based leading food and beverage company Agthia Group has acquired a majority stake in Jordan’s Nabil Foods, which marks its first foray into the processed food industry.
The deal is expected to create opportunities for cost and revenue synergies while providing Agthia with direct access to new revenue sources, the Abu Dhabi company said in a statement.
Agthia will buy a 60 percent stake in Nabil Foods from industrial holding company ADQ in exchange for a convertible instrument and a further 20 percent stake from Ideal Holding, bringing the total size of its shareholding to 80 percent in the food processing company.
The rate at which the instrument will convert into shares in Agthia is $1.50 (Dh5.50) per share, indicating an equity value of $107 million (Dh394 million) for ADQ’s stake in Nabil Foods. Further, Agthia said that the transaction is subject to obtaining regulatory and shareholders’ approvals.
“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 the completion of this acquisition, which will enable the company to continue to pursue its growth strategy. The coming period will see us leveraging our stronger portfolio of brands and products to boost revenues while continuing to seek growth opportunities that align with our strategy and deliver shareholder value.”
Agthia, which owns water brands including Al Ain and Al Bayan, has successfully completed its merger with Al Foah, a dates processing company. It has diversified its portfolio through investments in complementary food industries.
Nabil Foods is one of the leading 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 tonnes per year and has over 600 individual product lines.