UAE-based food and beverage company Agthia Group has acquired a 100% stake in Dubai-based confectionery and healthy food brand BMB Group.
BMB produces and distributes a wide selection of snacks and confectionery including chocolate, Mediterranean sweets and bakery ingredients for its own brand and external partners. These brands include Asateer, Al Qamar and Freakin’ Healthy.
Agthia’s acquisition of BMB shows its commitment to the expansion of its healthier food departments and the growth of the brand in the snacking and healthy food industries. According to Euromonitor, the global healthy snacks market is forecast to reach around AED 360 billion ($98 billion) by 2025.
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”.
During the beginning of this year, BMB has generated total revenues of approximately AED 268 million and an estimated EBITDA of AED 54 million. These include healthy EBITDA margins that are predicted to increase to around 20% this year.
The transaction for BMB is expected to be fully funded by cash and instantly accretive to Agthia’s earnings. If successful, this will be Agthia’s second investment in the snacking and healthy food market following its acquisition of dates company, Al Foah, earlier this year.
“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,” said Alan Smith, Chief Executive Officer of Agthia Group.
This deal is subject to customary closing conditions and regulatory approvals.
© FoodBev Media Ltd 2021
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