Agthia Group, the Abu Dhabi-based food and beverage company, has announced the acquisition of the water business of Saudi-based Delta Marketing Company.
The completion of the deal follows the signing of a share purchase agreement to acquire a 100 percent stake in November, state news agency WAM reported.
Agthia Group in January reported a net profit of AED254.3 million ($69.2 million) for 2016, up 10 percent on the previous year. Net revenues grew 8 percent to AED2.01 billion, led by the group’s flagship water business.
Commenting on the acquisition, Agthia chairman, Dhafer Ayed Al Ahbabi, said: "Taking ownership of Al Ain Water’s production in Saudi Arabia, the GCC’s largest consumer market, represents a significant milestone in Agthia’s regional growth.
"The acquisition provides Agthia with the facilities, network and talent that will allow us to grow Al Ain brand across the Saudi Arabian market.
"Over the coming years, Agthia plans to expand its operations in Saudi Arabia, leveraging its operational and industry expertise to develop a thriving water business as part of our commitment to deliver sustainable growth for our shareholders."
Tariq Al Wahedi, acting CEO of Agthia, added: "Regional expansion, especially in our water business, is a core part of our strategy. The ability to produce and distribute Al Ain Water in the GCC’s largest consumer market will further strengthen our position as a leading food and beverage group in the region."
Hassan Alireza, managing director of Delta Marketing Company, said: "We are pleased to close this transaction with Agthia, a company that can build upon our 30 years of history and continue to provide our customers and consumers with the best products.
"Finding a trusted partner to pursue these objectives and to take the business to its next level of growth and development was a priority. This transaction will offer genuine opportunities to the employees and provide them with the prospect of working for one of the GCC’s leading companies."For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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