EFG Hermes, a leading investment bank franchise, has concluded the advisory of regarding Agthia’s acquisition of Auf Group.
EFG Hermes, a leading investment bank franchise in Frontier Emerging Markets, has announced that its investment banking division has concluded its advisory regarding Agthia’s taking a controlling stake (60%) in Auf Group, a leading Egyptian producer of healthy snacks and a coffee manufacturer and retailer. UAE-based Agthia is one of the leading food and beverage companies in the GCC.
The investment is part of Auf Group’s ongoing efforts to accelerate its core business growth through expanding its reach within Egypt, the UAE and further afield.
A leading Egyptian F&B operation
Auf Group processes manufactures, retails and distributes a broad portfolio of products including healthy snacks, coffee, nuts, and other confectionary products under the “Abu Auf” masterbrand. The Group maintains a large direct-to-consumer operation in Egypt, with over 200 outlets and a country-wide distribution network that reaches over 20,000 points of sale. The Group has recently expanded into the UAE and currently operates three outlets. Tanmiya Capital Ventures (TCV), an Egyptian private equity firm, invested in Auf Group in 2019.
60% holding
The acquisition, when completed, will see Agthia holding 60% of Auf Group, while the Group’s owners will retain a combined 30% of the business and will continue to lead the operation. TCV will remain a shareholder, with a 10% stake in Auf Group.
EFG Hermes
Maged El Ayouti, Managing Director and Deputy Head of EFG Hermes’ Investment Banking division said, “We are honored to have advised the shareholders of Auf Group on this milestone transaction which is considered a steppingstone towards accelerating Auf Group’s expansionary goals across regional markets beyond its current Egypt base and recent UAE market entry. Auf Group has built a distinguished brand, innovative product offering, and an impressive direct-to-consumer retailing channel. The transaction is testament to the strong appetite from prominent international institutional investors in agile, efficiently run and innovative companies in Egypt which are able to demonstrate strong growth and who can scale both locally and regionally.”
EFG Hermes Holding operates in 13 countries across 4 continents and is a leading investment bank in Frontier Emerging Markets. The bank provides a range of services, including advisory, asset management, securities brokerage, research and private equity. In Egypt, the bank operates one of the fastest-growing non-bank financial institutions (NBFI) platforms with operations covering microfinance, leasing, factoring, Buy-Now Pay-Later (BNPL), digital payment solutions, mortgage finance and insurance.
The deal remains subject to satisfying customary closing conditions, including obtaining relevant regulatory approvals.
The past year has seen increasing interest in the Egyptian market from a wide range of UAE-based companies and investors, with FDI increasingly dramatically and a range of acquisitions taking place.