UAE-based food major Agthia Group has announced that its board of directors has approved the acquisition of a majority stake in Nabil Foods, a regional producer of frozen and chilled processed protein products.
Nabil Foods has a processing capacity of 43,000 tons per year and a range of over 600 individual product lines and distributes to more than 20 local and international markets.
The transaction is subject to obtaining certain regulatory and shareholders’ approvals and executing transaction documents, a statement said.
The acquisition would represent Agthia’s first entry into processed protein, placing it at the forefront of a fast-growing industry.
Through Nabil Foods, Agthia said it would have immediate access to new revenue streams as well as the opportunity to expand its product offering into the regional frozen and chilled processed meat sector.
Nabil Foods’ product portfolio is 100 percent Halal and distributed to major clients through a number of channels including retail, restaurants and catering, the statement added.
During the 12 months ending September 30, 2020, Nabil Foods achieved revenues of AED365 million and net income of AED32 million.
The acquisition would see Agthia acquiring an indirect stake of 80 percent in Nabil Foods.
Alan Smith, CEO of Agthia Group
Alan Smith, CEO of Agthia Group, said: “As we continue to expand into new profitable business lines in the food and beverage industry, our vision is to cement Agthia’s position as a mark of quality in the region while fueling product innovation in the sector.
“The acquisition of Nabil Foods, once completed, would represent another step towards meeting our ambitions; it would be an accretive acquisition for both the business and our shareholders, an expansion into a growing sector with high-quality product offerings and a mutual commitment to innovation aligned with evolving consumer trends.
“The coming period will see us leveraging our stronger portfolio of brands and products to boost revenues, while continuing to seek growth opportunities that align with our strategy and deliver shareholder value.”
Agthia Group was established in the UAE in 2004 and listed on the Abu Dhabi Securities Exchange (ADX) in 2005. It is part of ADQ, one of the region’s largest holding companies.
Founded in Jordan in 1989, Nabil Foods has nine production lines, producing up to 200,000 packs of finished products per day and supplying over 500 restaurants in the region.
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