Agthia Group, a leading UAE-based food and beverages company approved a strategic acquisition of a majority stake in Nabil Foods, one of the leading regional producers of frozen and chilled processed protein products distributed in more than 20 local and international markets.

Nabil Foods has a processing capacity of 43,000 tonnes per year and a range of over 600 individual product lines. The transaction is subject to obtaining certain regulatory and shareholders’ approvals and executing transaction documents, a statement said.

The acquisition would represent Agthia’s first entry into processed protein through a well-established brand with a successful track record of over 75 years, placing Agthia at the forefront of a fast-growing industry. Through Nabil Foods, Agthia would have immediate access to new revenue streams as well as the opportunity to expand its product offering into the regional frozen and chilled processed meat sector, the statement added. Nabil Foods’ product portfolio is 100 per cent Halal and distributed to clients through a number of channels including retail, restaurants and catering.

Nabil Foods is a sector leader in research and development (R&D), pioneering product innovations and following consumer preferences such as plant-based proteins. These capabilities would complement Agthia’s R&D efforts, unlocking opportunities to develop new by-products with higher margins.

During the last 12 months ending September 30, 2020, Nabil Foods achieved revenues of AED 365 million ($99.4 million), EBITDA of AED 70 million, and net income of AED 32 million. The acquisition would see Agthia acquiring an indirect stake of 80 per cent in Nabil Foods, including a 60 per cent stake from ADQ.

Alan Smith, Chief Executive Officer 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. Agthia’s balance sheet will be further strengthened and capitalised following completion of this acquisition, which will enable the company to continue to pursue its growth strategy.”