Abu Dhabi-based leading food and beverage company, Agthia Group has completed its transaction to acquire Al Faysal Bakery and Sweets, one of the most reputed bakeries in Kuwait.
“We hereby confirm that the acquisition is now completed and 100 percent stake in Al Faysal Bakery and Sweets has been transferred to the company according to the procedures adopted in Kuwait,” Agthia said in a statement to the Abu Dhabi Securities Exchange (ADX), where its shares trade.
The food and beverage group, which is part of one of the largest holding companies in the country, ADQ, said that the transaction will allow the company to improve its regional presence and broaden its consumer product portfolio. The company had signed a sales purchase agreement (SPA) to buy the Kuwaiti company in November.
The acquisition also quadruples the size of Agthia’s business in Kuwait, which includes the joint venture Al Rammah National for General Trading and Contracting Company that produces Al Ain Water.
“Agthia is committed to significantly increasing its regional presence through a diversified portfolio that will drive compelling value to shareholders. Acquiring Al Faysal Bakery and Sweets marks a key milestone for Agthia, enabling the group to accelerate on its roadmap and strengthen its leading role in the Fast-moving consumer goods (FMCG) sector.”
Al Faysal Bakery and Sweets, which has been functioning in Kuwait since 1991, generated revenues of $24 million (Dh90 million) in the 12 months ended September 30, 2020, and net income of $3 million (Dh12 million). It has more than 500 employees and serves the country’s retail food outlets.
Alan Smith, chief executive of Agthia Group commented that Al Faysal Bakery and Sweets will help Agthia gain more market share in Kuwait through its diverse products and in-house distribution capabilities.
Earlier this month, Agthia has acquired a majority stake in Jordan’s Nabil Foods, marking the first foray into the processed food industry. Furthermore, it has recently completed the acquisition of Al Foah, a dates processing company, and has diversified its portfolio by investing in complementary food industries.