Agthia acquires water bottling plant in Saudi Arabia
Agthia Group, a food and beverage group in the UAE, has signed a purchase agreement for 100% of the shares in the water business of Delta Marketing Company, based in Jeddah, Kingdom of Saudi Arabia producing “Al Ain” brand water. The transaction is expected to be completed by Quarter 1, 2017, following regulatory approvals and other closing conditions.
The acquisition 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 is said to help to fast-track Agthia’s objective of establishing a fully-fledged water production presence in KSA.
DWFC 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 the first water in the Middle East specifically designed for the preparation of baby food and available in regular PET bottles. The Company also operates a bulk water activity which is mainly targeted for large industrial processing companies.
Agthia reported net profit of AED 200 million for the period ended 30 September 2016, an increase of 12% from the previous year, with net revenues increasing by 11% to AED 1.52 billion. Its water business represented 32% of net revenues, and grew 27% against the same period in 2015.
