Agthia enters halal processed protein sector with Nabil Foods acquisition

UAE-based food and beverage company Agthia Group has acquired a majority stake in Nabil Foods, a regional producer of frozen and chilled processed protein products.

Founded in Jordan, Nabil Foods specialises in manufacturing a wide range of frozen and chilled 100% halal products – from chicken shawarma sandwiches to kubbeh balls – that are distributed in more than 20 local and international markets through retail, restaurants and catering.

The company has a processing capacity of 43,000 tons per year and a range of over 600 individual product lines. In the year ending 30 September 2020, Nabil Foods recorded revenues of AED 365 million (approximately $99.4 million).

The transaction – which is subject to certain regulatory approvals – will see Agthia acquire an indirect 80% stake in Nabil Foods, including a 60% stake from ADQ in exchange for a convertible instrument and a further 20% stake from Ideal Holding Limited. The approximate price of the 60% stake in Nabil Foods from ADG has been valued at AED 394 million ($107.3 million).

The deal marks Agthia’s first entry into the processed protein industry through a well-established brand and gives it further access to new markets, distributors and customers. With the purchase, Agthia says it will have immediate access to new revenue streams and significant cross-selling opportunities to support its growth strategy.

Established in 2004, Agthia Group is an Abu Dhabi-based food and beverage firm and part of the holding company ADQ. Its portfolio of brands span beverages to fruit and vegetables to dairy and frozen baked products, including Yoplait and Capri-Sun.

Alan Smith, CEO of Agthia Group, said: “The acquisition of Nabil Foods, once completed, would represent another step towards meeting our ambitions; it would be an accretive acquisition for both the business and our shareholders, an expansion into a growing sector with high-quality product offerings and a mutual commitment to innovation aligned with evolving consumer trends.

“The coming period will see us leveraging our stronger portfolio of brands and products to boost revenues, while continuing to seek growth opportunities that align with our strategy and deliver shareholder value.”