One of the largest beverage and food firms, Agthia Group PJSC, has announced ownership of a 60% equity share in Atuf Group, an Egyptian retailer that specializes in the production of coffee and nutritious foods. The Atuf Group was founded in 2010 and has a wide range of products available in Egypt’s retail, manufacturing, processing, and distribution sectors. Healthy snacks, nuts, coffee, and other confectionary items are among the company’s product offerings, which are marketed under the “Abu Auf” master brand.
The food and beverage company’s board of directors has accepted the acquisition, which was proposed by the investment banking unit of EFG Hermes. The agreement will allow Agthia to establish itself in the lucrative Egyptian snacking market, and when combined with the company’s acquisition of Atyab last year—a significant producer of processed meat—it has paved the way for Agthia to establish itself as a major force in the country’s CPG industry.
It will contribute to the expansion of the BMB Group’s recent acquisitions as well as the dates division of Al Foah, strengthening Agthia’s channel portfolio and market segment. Khalifa Sultan Al Suwaidi, the group’s chairman, claimed that the company’s primary goal in expanding into the MENAP region was reflected in the acquisition.
“The possession of Auf Group is an exciting chance to expand one of the fastest growing consumer markets in the region while also strengthening our offers of this commitment. According to Al Suwaidi, Auf Group will accelerate Agthia’s current and future high growth trajectory.
Alan Smith, the chief executive of the Agthia Group, claims that the acquisition will help the business expand its footprint in Egypt in addition to giving it access to new product lines and revenue streams.
Ahmed Auf, the chief executive officer of Auf Group, claims that since its establishment in 2010, the business has grown significantly in Egypt. Consistent investments in corporate infrastructure and human capital have enabled the company to establish a distinctive brand and hold a dominant position in the local market for healthy snacks.
A fantastic direct-to-consumer retailing channel, a recognizable brand, and a cutting-edge product line have all been developed by The Auf Group. According to Maged El Ayouti, managing director and deputy head of EFG Hermes’ investment banking division, the deal demonstrates the enormous interest from renowned international institutional investors in innovative, quickly expanding, agile companies in Egypt that can develop both locally and regionally.
As part of the agreement, Agthia will acquire 60% of Auf Group, but the founders of Auf Group will continue to run the company with full access to Agthia’s operational capabilities and regional reach, keeping a combined 30% ownership stake in the business.
The Egyptian private equity firm Tamiya Capital Ventures, which invested in Auf Group in 2019, will preserve its 10% stake in the company.
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