Finalizing Majority Stake Sale of Egypt’s Auf Group to UAE-Based Agthia
- The transaction follows several M&A deals the Firm advised on in the region this year, reinforcing its position as the leading M&A house in the region
Cairo and Abu Dhabi: EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today that its Investment Banking division successfully closed on the sale of a 60% stake in Auf Group to leading Emirati food company Agthia. EFG Hermes acted as sole sell-side financial advisor to Auf Group on the transaction.
The deal allows Auf Group to benefit from Agthia’s regional platform in the GCC with respect to its geographic expansion plan, while at the same time expanding its capabilities in the high growing Egyptian food and beverage market. Following the transaction, the company’s three founders will retain a combined 30% stake and Tanmiya Capital Ventures (TCV) a 10% stake.
Maged El Ayouti, Managing Director and Deputy Head of EFG Hermes’ Investment Banking division, said: “We are incredibly proud to have been part of this notable transaction for Auf Group — a renowned fast-growing Egyptian brand. Over the cycle, investors’ appetite to pursue high-growth investment opportunities that are value accretive continues to remain intact. We are pleased to have contributed to this homegrown brand’s exceptional growth story and taking it to a new chapter as we work to continue attracting global capital to compelling local opportunities.”
The local food and beverages industry boasts strong fundaments with a substantial consumer base and considerable growth, making homegrown super brands such as Auf Group attractive for global investors looking for sustainable high returns.
Established in 2010, Auf Group is a leading Egyptian brand that processes, manufactures, retails, and distributes a broad range of healthy snacks, coffee, nuts, and other confectionery products sold under the Masterbrand “Abu Auf.” The company boasts a sizeable direct consumer channel in the Egyptian market. It operates over 200 outlets in addition to a country-wide distribution reaching more than 20,000 points of sale in 26 Egyptian governorates. More recently, Auf Group has expanded its operations to the UAE, establishing four new stores in key retail locations in Dubai.
This transaction capitalizes on the Firm’s M&A expertise in the region and the F&B sector particularly, having advised on several F&B assignments in the region, including Agthia’s acquisition of Egyptian meat processing company Atyab, acquisition of Kuwait’s Al Faysal Bakery and Sweets, and acquisition of UAE’s health snacks company, BMB Group. The transaction also comes on the heels of a series of landmark M&A deals the Firm has advised on in Egypt and the GCC in 2022, including UAE-based AD Ports’ USD 140 million acquisition of Egypt’s Transmar International Shipping Company (Transmar) and Transcargo International (TCI), and our advisory to the Public Investment Fund of Saudi Arabia (PIF) on the acquisition of a minority stake in B.Tech.