Agthia to pursue mergers, acquisitions in Pakistan, ME, Africa

Author: Agencies

Agthia, Abu Dhabi-based food and beverage company, will pursue mergers and acquisitions in Pakistan, Middle East and North Africa, and will focus on improving financial performance and expansion into new product categories, as it aims to become the top regional food and beverage company by 2025.

The company is transforming its operations under its new five-year growth strategy that is built on three strategic pillars: growth, efficiency and developing capability, Agthia said in a statement on Monday.

The strategy is designed to extend the group’s market leadership and provide significant value for all stakeholders. Agthia, which is part of one of the region’s largest holding companies, ADQ, is involved in the manufacturing, distribution and marketing of a wide range of F&B products, including popular regional brands such as Al Ain water and Al Foah dates.

“The Agthia strategy over the next 5 years will focus on improving the efficiency of our existing businesses and pursuing new scalable opportunities in our region,” Khalifa Al Suwaidi, chairman of Agthia Group, said.

The company has made a number of acquisitions in recent months as it vies to expand its footprint and add new verticals to its business. Its recent acquisitions include Kuwait’s Al Faysal Bakery and Sweets, Jordan’s Nabil Foods and the world’s largest date processing and packaging company, Al Foah. The company is also buying a majority stake in Egypt’s Ismailia Investments, which makes frozen chicken and beef products, the company said earlier this month.

Agthia is looking to save Dh200 million ($54m) through “synergy extraction as well as simplification of its existing and acquired businesses”, as part of its growth strategy, according to the company. “We will follow a disciplined expansion plan focused on the acquisition, integration and scaling of new businesses and create a more effective way to serve and innovate, as we continue to engage with our partners and key customers to leverage their insights in building a stronger portfolio,” Alan Smith, chief executive of Agthia, said.