The board of Abu Dhabi-listed food and beverages company Agthia Group has approved a deal to take a 100% indirect stake in confectionery and healthy foods maker BMB Group, the latest in a string of acquisitions, Agthia said in a statement, Trend reports with reference to Reuters.
BMB Group, which is also based in the United Arab Emirates (UAE), manufactures and distributes snacks including Mediterranean sweets and chocolate to countries including the United States and Saudi Arabia.
Agthia, which is partly owned by Abu Dhabi's state holding company ADQ, said BMB was an "incubator and accelerator of healthy food brands" and that it expected to pay for the acquisition in cash.
Under the deal, a wholly-owned subsidiary of Agthia will buy BMB units Ripplette Corp and Mediterranean Confectionery Company Limited (MCCL) for 646.26 million dirhams ($176 million) from various sellers including the co-chief executive officers of BMB, Agthia said in a bourse filing.
Ripplette operates in the United Arab Emirates and internationally, while MCCL operates in Saudi Arabia.
Freshfields Bruckhaus Deringer LLP is Agthia's legal counsel for the deal and EFG Hermes is its financial advisor.
While Agthia's $1.36 billion market capitalisation is some way below regional rivals such as Saudi Arabia's Almarai and Savola Group, it has recently been expanding through acquisitions.
Agthia Chief Executive Alan Smith told Reuters in April that the company plans to become an industry leader in the Middle East and North Africa region by 2025 through tighter efficiency and further acquisitions, following a blitz of recent deals.
Companies that Agthia has recently bought stakes in include Ismailia Agricultural and Industrial Investment, which produces frozen chicken and beef products under four brands in Egypt, as well as UAE dates company Al Foah, Saudi frozen proteins group Nabil Food Industries and Kuwait's Al Faysal Bakery and Sweets.