Agthia Group completed its transaction to buy Kuwait's Al Faysal Bakery and Sweets, the company said in a statement late on Wednesday. It did not disclose the financial details of the deal.
"We hereby confirm that the acquisition is now completed and 100 per cent stake in Al Faysal Bakery and Sweets has been transferred to the company according to the procedures adopted in Kuwait," Agthia said in a statement to the Abu Dhabi Securities Exchange, where its shares trade.
The Abu Dhabi-based food and beverage company, which is part of one of the region’s largest holding companies, ADQ, said the transaction will allow it to strengthen its regional footprint and expand its portfolio within consumer products.
The acquisition also quadruples the size of Agthia’s business in Kuwait, which includes the joint venture Al Rammah National for General Trading and Contracting Company that produces Al Ain Water.
Agthis "is committed to significantly increasing its regional presence through a diversified portfolio that will drive compelling value to shareholders," Khalifa Sultan Al Suwaidi, the company's chairman and chief investment officer of ADQ, said.
"Acquiring Al Faysal Bakery and Sweets marks a key milestone for Agthia, enabling the group to accelerate on its roadmap and strengthen its leading role in the FMCG sector."
Al Faysal Bakery and Sweets, which has been operating in Kuwait since 1991, generated revenues of Dh90 million in the 12-month period ended September 30, 2020, and net income of Dh12m. It employs more than 500 people and serves retail food outlets in the country.
Through its diverse products and in-house distribution capabilities, Al Faysal Bakery and Sweets will help Agthia capture more market share in Kuwait, Alan Smith, chief executive of Agthia Group, said.
Earlier this month, Agthia bought a majority stake in Jordan's Nabil Foods, marking its first foray into the processed food industry.
Agthia recently completed its merger with date processing firm Al Foah and has been diversifying its portfolio with investments in complementary food sectors.
Established in 2004, Agthia’s assets are located in the UAE, Oman, Kuwait, Saudi Arabia, Egypt and Turkey. It manufactures a variety of brands in different categories including water and beverages, flour and animal feed, processed fruits and vegetables, dairy and frozen products.