Abu Dhabi-based leading food and beverages company Agthia has announced that its shareholders approved the purchase of Jordan-based processed meat producer Nabil Foods.
Agthia’s total category portfolio will be expanded by adding processed protein to its existing businesses.
Mr. Alan Smith, Chief Executive Officer Agthia Group remarked that the transaction is “well-aligned with our 2025 transformational strategy that is focused on pursuing new, scalable opportunities in the region over the next five years that will help extend Agthia’s market leadership, provide significant value for all our stakeholders and continue to drive profitability.”
In January, Agthia agreed to buy a 60 percent stake in Nabil Foods from industrial holding company ADQ in exchange for a convertible instrument and a 20 percent stake from US-based Ideal Holding, taking its total stake in the food processing firm to 80 percent.
The price at which the instrument will turn into Agthia shares is $1.4 million, meaning that ADQ’s stake in Nabil Foods is worth $107.3 million.
Nabil Foods has a 43,000-tonne-per-year manufacturing capacity and over 600 product lines.
Agthia, which owns water brands like Al Ain and Al Bayan, has been on a buying spree in an attempt to diversify its offerings. Al Faysal Bakery and Sweets in Kuwait, as well as Al Foah, the world’s largest date-processing, and packaging company, were recently acquired.
In addition, the company purchased a 75 percent stake in Egypt’s Ismailia Investments, or Atyab, which produces frozen meat products. Agthia said that deal is valued at $205 million.
The contribution from the Al Foah dates and the Al Faysal Bakery and Sweets companies, both of which were incorporated into the group’s results during the quarter, boosted Agthia’s first-quarter net profit by 86 percent to $14 million this year.
Nabil Foods results will be added in the second quarter, and those from Ismailia Investments in the third quarter, according to the company.
Agthia, which employs over 4,000 people, has also unveiled a five-year plan to become the region’s largest food and beverage company by 2025.