Dubai PR Network, Online Press Release from Dubai and Middle East
 
Business, Banking and Investments(Banking & Investments)
Filter PR by
  
Agthia Group Announces Further Investment in Snacking and Healthy Food Market Through Acquisition of BMB
 
Agthia Group Announces Further Investment in Snacking and Healthy Food Market Through Acquisition of BMB
• Agthia’s Board of Directors approves the acquisition of BMB Group
• UAE-based BMB manufactures a wide variety of innovative confectionery, healthy snacks and food products
• BMB is also an incubator and accelerator of healthy food brands across multiple snacking categories
• The transaction, subject to customary closing conditions including relevant regulatory approvals, would represent Agthia’s second investment in the snacking and healthy food market, following its acquisition of Al Foah earlier this year
 
02 September 2021: Agthia Group PJSC, the region’s leading food and beverage company, today announced that its Board of Directors has approved a strategic acquisition of a 100% stake in BMB Group, the GCC’s leading innovative healthy snacks and food company. BMB manufactures and distributes a wide variety of chocolate, Mediterranean sweets, bakery ingredients and healthy snacks and food for its own brands and partners.
 
Launched in 2007, BMB has a large portfolio of confectionery and healthy food brands – including Asateer, Al Qamar, Freakin’ Healthy and Benoit – and distributes over 2,000 SKUs in more than 23 countries worldwide, including the UAE, Saudi Arabia, and USA. 
 
The acquisition of BMB would represent Agthia’s commitment to expanding its healthy food categories and enable the company to leverage the strength of BMB’s capabilities to accelerate its presence in the snacking and healthy food segment. Agthia established a footprint in the space earlier this year with the acquisition of date company Al Foah. With the global healthy snacks market forecast to reach almost AED 360 billion ($98 billion) by 2025 according to Euromonitor, Agthia is positioning itself in an expanding segment, with scalable regional and global brands. 
 
The acquisition of BMB is expected to drive tangible short- and long-term value for all stakeholders with significant cost and revenue synergy opportunities from the integration of the combined platform, enabling footprint expansion in the confectionery market, healthy snacking market, and cross-market distribution.
 
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group, said: “Earlier this year, we presented Agthia’s corporate strategy to the public, and outlined our commitment to investing into the fastest growing and profitable segments of the food and beverage space. The acquisition of BMB aligns with that mandate, and will accelerate the footprint of our snacking business, while adding strong brands and capabilities to our portfolio. We are also pleased with the immediate value accretion that the acquisition of BMB creates for Agthia’s shareholders.”
 
Alan Smith, Chief Executive Officer of Agthia Group, said: “This acquisition would enable Agthia to expand its presence and operations in the snacking vertical, further diversifying our extensive product portfolio and geographic reach. 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.”
 
Bilal Ballout and Mohamad Khachab, Co-Chief Executive Officers of BMB Group, said: “As a homegrown UAE business, it gives us immense pride to partner with Agthia for the next phase of our growth, one in which we wish to serve our customers through increased product innovation, scale our business across the healthy foods segment, and continue to evolve into a truly global foods conglomerate. We would like to thank our customers, suppliers, and employees for the invaluable role that they continue to play in our journey and wish to welcome Agthia to the BMB family.”
 
During the Last Twelve Months (LTM) period ending 30 June 2021, BMB generated total revenues of around AED 268 million and EBITDA of approximately AED 54 million, with healthy EBITDA margins expected to grow to around 20% this year.
 
The transaction will be for 100% of BMB and is expected to be fully funded by cash, and immediately accretive to Agthia’s earnings. 
 
BMB is headquartered in Dubai, UAE, where its two manufacturing facilities, stretching over a combined total of 150,000 square feet, are located. The Group employs nearly 1,000 staff.
 
The transaction is subject to satisfying customary closing conditions, including obtaining relevant regulatory approvals.
 
Freshfields Bruckhaus Deringer LLP is acting as legal counsel to Agthia. EFG Hermes is acting as financial advisor to Agthia.


Posted by : Dubai PR Network Editorial Team
Viewed 7979 times
PR Category : Banking & Investments
Posted on : Thursday, September 2, 2021  11:50:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : Herman Miller Increases Use of Ocean-bound Plastic with Aero...
Next Story : Arab-Brazilian Chamber of Commerce enhances transactions and...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Pandora Introduces New Limited-Edition Charm in Support of Unicef [12858-Views]
New Program for Saudi Arabia Healthcare Professionals Targets Healthcare Management in Qat... [7708-Views]
Ixora Organic Beauty Continues Its Fight for Health With Its Latest Breast Cancer Awarenes... [5974-Views]
Dazzle This Diwali Season With Tanishq [4338-Views]
Gift of Gold - Get Guaranteed Gold Coins with Malabar Gold & Diamonds [4104-Views]
Story of Hope: UAE Resident Shares the Importance of Early Detection this Breast Cancer Aw... [3956-Views]
Zoho Unveils New Cutting-edge Apps and Services in Zoho One, The Operating System for Busi... [3870-Views]
QNET Supports Community Activity to Raise Funds for Indus Hospital in Pakistan [3788-Views]
Rivoli Group Launch OMEGA's New ad Campaign for the 007 Edition timepiece on Burj Khalifa [3764-Views]
Rashed Clinches Third World F2 Crown With Victory in Portugal [3756-Views]
Tribal Thumka Is Back With a New Flair! [3731-Views]
Dubai Municipality Celebrates World Food Day [3657-Views]
The 2020 Edition of Happiest Workplaces in the Region Revealed [3563-Views]
QS Arab Region Rankings 2022: Abu Dhabi University Ranks Among the Top 21% of Educational ... [3452-Views]
Food Waste takes the stage to mark World Food Day at EXPO 2020 [3411-Views]
UAE Government Leaders, African Ministers and MIT Expert Share Insights on Day 1 of GITEX ... [3268-Views]
Union Coop ‘Humanitarian Support Program': Employees Contribute AED 1,344,000 since 2018 [3231-Views]
Dubai Culture and Letswork Collaborate to Provide Creative Spaces in Dubai [3169-Views]
The Swiss Pavilion Highlights Education, Innovation & Research during Space Week [3149-Views]
Past and Present Students Sing the Praises of GEMS Modern Academy as it Celebrates 35 Year... [3141-Views]
Dubai Health Authority Honoured for Excellence in Implementing Business Process [3108-Views]
UAE National World Robot Olympiad Winners Announced [3079-Views]
'Astronomer's Paradise' Chile Lines Up Space Week Programmes at Expo 2020 Dubai [3067-Views]
GEMS Students earn University Credits Thanks to Collaboration with Arizona State Universit... [3018-Views]
Union Coop Launches ‘Mirdif Park Way' Investment Destination [2956-Views]
 
RSS Facebook Twitter LinkedDin DubaiPRNetwork.com on Instagram
 
Top Sections
 
Top Stories