EFG Hermes Successfully Concludes Advisory on UAE-based Agthia’s Majority Acquisition of Auf Group

EFG Hermes, the leading investment bank franchise in Frontier Emerging Markets (FEM), announced today that its investment banking division successfully concluded advising Auf Group’s founders and Tanmiya Capital Ventures (TCV) on the entry into a strategic transaction concerning Auf Group, a leading specialized Egyptian healthy snacks and coffee manufacturer and retailer, with UAE-based Agthia, one of the leading food and beverage companies in the region.

The transaction marks the beginning of a new chapter in Auf Group’s growth journey to further accelerate its core business growth, expand the reach, and help the Company to realize its potential and growing footprint in Egypt, UAE and beyond.

Maged El Ayouti, Managing Director 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.”

Established in 2010, Auf Group processes, manufactures, retails and distributes a broad portfolio of products including healthy snacks, coffee, nuts, and other confectionary products sold under the “Abu Auf” masterbrand. 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, and has recently expanded as part of its strategic geographic expansion into the UAE with 3 outlets operational currently. In 2019, Tanmiya Capital Ventures (TCV), a prominent Egyptian private equity firm, invested in Auf Group in order to accelerate its growth during the last few years and further institutionalized its operations.

The transaction, upon completion, will see Agthia owning 60% of Auf Group, while Auf Group’s founders will retain a combined stake of 30% in the business and continue to lead the company with full backing of Agthia’s regional footprint and operational support. Tanmiya Capital Ventures (TCV) remains a committed shareholder with a 10% stake in Auf Group. The acquisition is subject to satisfying customary closing conditions, including obtaining relevant regulatory approvals.

In 2022, EFG Hermes Holding was recognized by the Financial Times and Statista as one of the fastest growing companies in Africa in 2022. This year, the Firm concluded a number of advisory transactions in the GCC and Egypt, including USD 6.1 billion IPO of DEWA in Dubai, the region’s largest listing since 2019, USD 2 billion IPO of Borouge in Abu Dhabi, USD 323 million private placement of Ali Alghanim and Sons in Kuwait, and EGP 1.3 billion IPO of Macro Group Pharmaceuticals on the Egyptian stock exchange. This transaction also follows a series of recent F&B 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.