Abu Dhabi food and beverages company Agthia acquired snacks maker BMB Group, marking its second acquisition within the healthy foods category as it seeks to further expand its portfolio.
The deal, which was for an undisclosed sum, is expected to increase Agthia's exposure to the $360 billion global market for healthy snacks and will allow the company to significantly expand its footprint, the company said on Wednesday.
“In addition to immediate access to new revenue streams and markets, we are excited by the prospect of exploring opportunities to fuel product innovation, such as the development of new healthy and specialist snacks in response to market trends,” Agthia chief executive Alan Smith said.
BMB manufactures and distributes a range of products under brands, including Asateer, Al Qamar, Freakin’ Healthy and Benoit. Formed in 2007, the company distributes more than 2,000 products in more than 23 countries worldwide, including the UAE, Saudi Arabia and the US.
The company's revenue for the 12-month period to the end of June stood at Dh268m while earnings before interest, taxes, depreciation and amortisation were Dh54m in the same period. BMB's Ebitda margins are expected to grow by about 20 per cent this year, Agthia said.
The transaction is expected to be fully funded by cash and will be immediately accretive to Agthia’s earnings, the company said.
The deal is subject to satisfying customary closing conditions, including obtaining relevant regulatory approvals.
Agthia, which is owned by Abu Dhabi's state holding company ADQ, reported a 17.5 per cent increase in its second-quarter net profit this year as acquisitions boosted revenue. Net income for the three months to the end of June climbed to $5m from the same period a year earlier.
The company has made a number of acquisitions in recent months as it vies to become a leading regional player in the industry.
The acquisitions have boosted the net revenue contribution of Agthia’s consumer business by 20 per cent annually to Dh855m, it said earlier this year.
The company is currently looking at a pipeline of potential acquisitions and is interested in acquiring assets in the UAE, the Mena region and Pakistan, Mr Smith told The National earlier this year.
Targets beyond these regions would be interesting if it finds assets that are complementary to its business, he said.