Abu Dhabi-based leading food and beverages company Agthia Group is all set to gain a majority stake in Egyptian frozen processed chicken and beef products producer Ismailia Investments (Atyab) after receiving approvals from its Board of Directors.
Ismailia Investments caters to the value, economy and premium segments of the Egyptian market with its four brands, namely Atyab, Meatland, Shiketita and Furat. It has a processing capacity of around 70,000 tons per year through its facilities and production lines, including a 60,000 sqm manufacturing facility.
Ismailia Investments has been able to post significant revenue growth over the last several years. The company has been maintaining a reassuring 28 percent Compound Annual Growth Rate (CAGR) between 2016 and 2020, with healthy EBITDA margins of around 19 percent as of last year. The firm achieved net revenues of $115.43 million with an EBITDA of $21.51 million.
The frozen processed chicken and beef products producer has more than 2,500 employees and 11 distribution centers spread across Egypt.
“The proposed acquisition of Atyab presents a significant opportunity for Agthia to expand in the processed protein sector following our recent announcement of Board approval to acquire Nabil Foods. The transaction would place Agthia at the forefront of a growing sector in one of the MENA region’s fastest-growing economies, providing access to around 100 million new consumers characterized by a wide youth segment and rising income. Furthermore, there are significant cost, revenue synergies and enhanced distribution capabilities that we will be able to capitalize on by adding Atyab to our existing Egyptian operations.”
The transaction is expected to bring tangible immediate and long-term value for Agthia shareholders with significant cost and revenue synergies enabling expansion in value-added retail products and cross-market distribution.
Agthia will gain a 75.02 percent stake in Ismailia Investments as part of the proposed deal. Mr. Attito Raslan, Atyab’s founder, leader and industry veteran will retain a stake in the company.
Established in 2004, Abu Dhabi-based was listed on the Abu Dhabi Securities Exchange (ADX) in 2005.