<a href="https://www.thenationalnews.com/business/markets/2022/05/09/abu-dhabis-agthia-q1-profit-surges-64-on-strong-sales/">Agthia</a> has completed the acquisition of a majority stake in Egypt's snacks and coffee producer, Auf Group, as the Abu Dhabi-based food and beverage company continues to <a href="https://www.thenationalnews.com/business/economy/agthia-to-pursue-mergers-and-acquisitions-as-it-vies-to-be-top-regional-f-b-company-by-2025-1.1201951">expand its portfolio</a> in the Arab world’s most populous country. The acquisition strengthens Agthia’s position as one of the leading regional consumer packaged goods companies, building on acquisitions it made previous year, the company said in a <a href="https://adxservices.adx.ae/WebServices/DataServices/contentDownload.aspx?doc=2726494" target="_blank">statement </a>to the Abu Dhabi Securities Exchange on Thursday. The deal to acquire a <a href="https://www.thenationalnews.com/business/2022/07/14/abu-dhabis-agthia-acquires-60-stake-in-egyptian-snacks-maker-auf-group/" target="_blank">60 per cent Auf stake</a> for an undisclosed amount was first announced in July. Auf Group’s founders have retained a combined stake of 30 per cent in the business, while Tanmiya Capital Ventures, an Egyptian private equity firm that invested in Auf Group in 2019, continues to hold the remaining 10 per cent stake, Agthia said. “The acquisition of Auf Group aligns with our 2025 growth strategy to acquire, integrate and grow attractive businesses in value-add categories,” said Khalifa Al Suwaidi, chairman of Agthia. “Egypt remains a strategic target for Agthia, as one of the Mena region’s fastest-growing consumer markets. "We continue to identify opportunities to grow our presence there, while strengthening our F&B leadership in the Middle East and beyond.” Auf Group, which also has a presence in the Netherlands, produces and sells products such as coffee, nuts, healthy snacks and other confectionery products sold under the Abu Auf master brand across Egypt. The Egyptian snacking market is forecast to grow to around Dh11.2 billion by the end of 2024 from about Dh8.7 billion ($2.3 billion) in 2020, Agthia said, quoting Euromonitor data. Auf Group has plans to expand its footprint across the UAE and beyond. It has already invested in four new stores in the country, including a flagship store in the newly opened Dubai Hills Mall. In 2021, Auf Group generated revenue of Dh236 million and earnings before interest, taxes, depreciation and amortisation of nearly Dh58 million. “This is an important acquisition for Agthia that further expands our footprint in the snacking and healthy food verticals,” said Alan Smith, chief executive of Agthia. Agthia, which is owned by Abu Dhabi's state holding company <a href="https://www.thenationalnews.com/business/technology/2021/08/31/abu-dhabis-adq-to-start-new-agtech-park-in-al-ain-to-boost-local-food-production/">ADQ</a>, has been on a deal-making spree to become the biggest food and beverage company in the region by 2025. In May, Agthia announced its expansion into<a href="https://www.thenationalnews.com/business/economy/2022/05/31/agthia-to-expand-in-saudi-arabia-with-245m-greenfield-investment/"> Saudi Arabia </a>with a greenfield investment worth Dh90 million that will be used to set up a manufacturing unit in the kingdom. Last December, the company completed the acquisition of snacks maker <a href="https://www.thenationalnews.com/business/economy/2021/12/13/agthia-completes-acquisition-of-snacks-maker-bmb-group/">BMB Group</a>. In September, it acquired a 75.02 per cent stake in Egypt-based meat processor Ismailia Investments, also known as <a href="https://www.thenationalnews.com/business/economy/2021/09/15/agthia-completes-acquisition-of-egyptian-meat-processor-atyab/">Atyab.</a> The company’s third-quarter net profit jumped more than 14 per cent to Dh40.5 million. Its quarterly revenue jumped about 20 per cent to more than Dh953.5 million, while assets grew to Dh6.6 billion.