Takeover will take Agthia’s Al Ain brand into Saudi Arabia as firm targets regional growth
Agthia Group, a leading food and beverage group in the UAE, announced in November that it has signed a pur- chase agreement for 100% of the shares in the water business of Delta Marketing Company, based in Jeddah, Saudi Arabia, producing Al Ain brand water.
Following regulatory approvals and other closing conditions, the transaction is expected to be completed by the first quarter of 2017.
The takeover enables Agthia to enter the Saudi market for the first time with its Al Ain water brand, the leading bottled water brand in the UAE, reflecting the group’s strategy to expand in the GCC and become a region-wide player.
Delta’s water business has been present in Saudi Arabia for three decades and is a growing and cash-generating operation. The transaction helps to fast-track Agthia’s objective of establishing a fully fledged water production presence in Saudi Arabia.
HE EngDhaferAyed Al Ahbabi, Agthia chairman, said, “Saudi Arabia presents a very large market opportunity for us and the vehicle we have found to extend our presence there by producing Al Ain water locally allows us to take a critical step in our regional expansion.”
Agthia is pursuing a five-year strategy aimed at becoming one of the Middle East’s leading food and beverage companies. The cornerstone of this project is expanding thecompany’s water business. Agthia entered into a joint venture in Kuwait in 2016 to establish a water-bottling plant, which is expected to
be completed in 2017. In 2015, Agthia also acquired Al Bayan Water Company, a leading player in the 5 gallon bulk water segment in the UAE with a presence also in Oman. Alpin, a natural spring water brand of Agthia, is produced at its factory in Turkey.
Delta has three water brands: Delta Water, a premium product available in large size dispenser bottles of 5 and 6 gallon; Al Ain, its largest-selling brand produced in a range of sizes from dispenser bottles, regular PET bottles, and cups; and Bambini, designed for the preparation of baby food and available in regular PET bottles.