Agthia Group PJSC, a leading food and beverages company and part of ADQ - one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s economy – today announced that it has signed a sales purchase agreement “SPA” to acquire Al Faysal Bakery and Sweets, one of Kuwait’s most reputable bakery, with strong brand heritage and a much loved portfolio.
H.E. Khalifa Sultan Al Suwaidi, Chairman, Agthia Group and Chief Investment Officer at ADQ, said: “Agthia remains committed to grow across several categories and have identified Kuwait as an important market for our strategic move of expanding the Group in the region. The acquisition of Al Faysal Bakery and Sweets underscores our priorities to deliver value to our shareholders.”
“This acquisition will support the Group’s strategic growth considering the bakery’s strong market share, as well as distribution and manufacturing capabilities.”
Alan Smith, Chief Executive Officer of Agthia Group, said: “Our decision to acquire Al Faysal Bakery and Sweets in Kuwait aligns with our strategy to further build our regional F&B footprint, adding significant scale to our existing operations in Kuwait and further diversifying our portfolio.
The acquisition will be accretive to Agthia’s existing platform and we expect to generate significant revenue and cost synergies”.
In fiscal year 2019, Al Faysal Bakery and Sweets generated revenues of AED 92 million, and EBITDA of AED 27 million, and net income of AED 17.2 million.
Al Faysal Bakery and Sweets commands an attractive and competitive position as a business with a streamlined value chain of manufacturing, distribution and market share. Al Faysal Bakery and Sweets has been serving the Kuwait market since 1991 with a diverse portfolio of premium products serving all retail food outlets in the country. This footprint makes Al Faysal Bakery and Sweets one of the most reputable bakeries in Kuwait and a household name. With over 500 employees Al Faysal Bakery and Sweets produces fatayers, croissants, mini pizzas and new product categories such as cupcakes, puff and rusks.
As a further diversified consumer-centric food and beverage player, Agthia will continue to enhance its presence and market share in Kuwait.
Source: Havas PR