EFG Hermes concludes advisory on Agthia’s majority acquisition of Auf Group

EFG Hermes’ investment banking division has successfully concluded advising Egyptian retailer and manufacturer Auf Group’s founders and Tanmiya Capital Ventures (TCV) on a strategic transaction involving Auf Group and UAE-based food and beverage company, Agthia.

Established in 2010, Auf Group processes, manufactures, retails and distributes a broad portfolio of products including healthy snacks, coffee, nuts, and other confectionery products sold under the ‘Abu Auf’ brand. It has a large direct-to-consumer channel in Egypt operating over 200 outlets (95 branded stores and 113 shop-in-shop outlets) couple with a country-wide distribution reaching 20,000 points of sale in 26 governorates in Egypt.

It recently expanded as part of its strategic geographic expansion into the UAE with three outlets.

In 2019, TCV, a Egyptian private equity firm, invested in Auf Group in order to accelerate its growth during the last few years and further institutionalised its operations.

Maged El Ayouti, MD and deputy head of EFG Hermes’ Investment Banking division commented: “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.”

The transaction, upon completion, will see Agthia owning 60 per cent of Auf Group, while Auf Group’s founders will retain a combined stake of 30 per cent in the business and continue to lead the company with full backing of Agthia’s regional footprint and operational support. TCV will remain a committed shareholder with a 10 per cent stake in Auf Group.

The acquisition is subject to satisfying customary closing conditions, including obtaining relevant regulatory approvals.

In 2022, EFG Hermes Holding concluded a number of advisory transactions in the GCC and Egypt, including the $6.1bn DEWA IPO, $2bn Bourouge IPO, $323m private placement of Ali Alghanim and Sons in Kuwait, and EGP1.3bn IPO of Macro Group Pharmaceuticals on the Egyptian stock exchange. This transaction also follows a series of recent food and beverage sector assignments in the region, including advising Agthia on the acquisition of Egyptian meat processing company Atyab, the acquisition of Kuwait’s Al Faysal Bakery and Sweets and the acquisition of UAE’s health snacks company, BMB Group in 2021.

Read: EFG Hermes completes advisory on $6.1 bn DEWA IPO