- Oct 16, 2024
- 2 min read
Arla Foods has announced a non-binding offer to acquire a majority stake in the Arabian Food Industries Company, commonly known as Domty, a player in Egypt's dairy market.
The offer values the company at approximately 8.9 billion EGP (approx. $183 million), with a proposed price of 31.48 EGP per share.
Domty, which employs roughly 4,000 individuals and operates two production facilities in Egypt, has been a key player in the country's food and beverage sector.
If the acquisition proceeds, it is anticipated that the current owners – the El Damaty family – will retain a minority stake, with Mohamed El Damaty expected to remain as CEO. Arla intends to delist Domty from the Egyptian stock exchange following the transaction.
Kim Villadsen, senior vice president for the Middle East and North Africa (MENA) at Arla, said: ”The dairy market in Egypt is substantial, Domty is a leading player in that market and the company is well-aligned with our strategy in Egypt. We are now looking at the details before deciding whether to proceed with purchasing the business.”
The acquisition remains contingent upon satisfactory due diligence, definitive documentation, and corporate and regulatory approvals. As a publicly listed company, the details of the offer are accessible, but Arla has refrained from commenting further on the specifics of the transaction.
Arla Foods, owned by approximately 8,000 farmers across several European countries, has established a significant presence in the MENA region, which represents its largest commercial area outside Europe. The company is recognised for its sustainable farming practices and is a key manufacturer of organic dairy products, with well-known brands including Arla, Lurpak, Puck and Castello.
