By Andy Sambidge
Food and drinks group completes deal for Pelit Su, its second overseas investment
Agthia Group, one of UAE's biggest food and beverage groups, has announced the completion of its acquisition of a Turkish spring water company.
The Abu Dhabi Securities Exchange (ADX) listed firm said it has acquired 100 percent of Pelit Su.
The acquisition was first announced in December but Agthia has now taken management control of the business, it said in a statement.
Pelit Su, which is situated in the southern Turkish province of Adana, gets its spring water from the renowned Taurus Mountains.
Rashed Mubarak Al Hajeri, chairman of Agthia Group, said: "Agthia's acquisition of Pelit Su is in line with our geographic expansion strategy. The acquisition marks Agthia Group's second international expansion following our investment in Egypt."
Agthia Group CEO Ilias Assimakopoulos added: "The acquisition of Pelit Su will expand Agthia's bottled water business footprint beyond the UAE, with direct access to a natural spring water source.
"This will provide access to high quality spring water facilitating Agthia's growth into higher margin premium spring bottled water, targeting not only Turkey but other regions as well."
In October, Agthia announced a 14 percent increase in sales for the first nine months of 2011 compared to the same period in the previous year.
Agthia said it had continued to see strong growth momentum in all categories as sales reached AED841m.
But net profit of AED60m represented a 24 percent fall year-on-year, blamed on a four percent drop in gross margin.
And the company said in a statement that the repercussions of the regional unrest "remained a concern".