Abu Dhabi-based leading food and beverage company, Agthia Group has signed a sales purchase agreement (SPA) to acquire Al Faysal Bakery and Sweets, one of Kuwait’s most reputable bakery with a strong brand heritage and a much appreciated portfolio.
This is the second acquisition within a month for Agthia, which is a part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s economy. The transaction will allow Agthia to expand its footprint in Kuwait as a diversified consumer-centered food and beverage player, it said in a statement to the Abu Dhabi Securities Exchange, where its shares trade.
“Agthia remains committed to grow across several categories and have identified Kuwait as an important market for our strategic move of expanding the Group in the region. The acquisition of Al Faysal Bakery and Sweets underscores our priorities to deliver value to our shareholders. This acquisition will support the Group’s strategic growth considering the bakery’s strong market share, as well as distribution and manufacturing capabilities.”
Alan Smith, Chief Executive Officer of Agthia Group, said, “Our decision to acquire Al Faysal Bakery and Sweets in Kuwait aligns with our strategy to further build our regional F&B footprint, adding significant scale to our existing operations in Kuwait and further diversifying our portfolio.”
“The acquisition will be accretive to Agthia’s existing platform and we expect to generate significant revenue and cost synergies,” he further added.
In the fiscal year 2019, Al Faysal Bakery and Sweets generated $25 million (AED 92 million) in revenue and $7 million (AED 27 million) in EBITDA, and $4 million (AED 17.2 million) in net income.
Al Faysal Bakery and Sweets
Al Faysal Bakery and Sweets commands an attractive and competitive role as a company with a streamlined supply chain of production, distribution and market share.
Since 1991, Al Faysal Bakery and Sweets has served the Kuwait market with a diverse range of quality items targeting all the country’s retail food outlets. These footprints make Al Faisal Bakery and Sweets one of the most popular bakeries in Kuwait.