ABU DHABI, 29th March, 2017 (WAM) -- Agthia Group has completed its acquisition of water business of Delta Marketing Company, providing Agthia with a fully-fledged water business in the Kingdom of Saudi Arabia. Agthia had signed a share purchase agreement to acquire a 100 percent stake in water business of Delta Marketing Company in November 2016.
Commenting on the acquisition, Agthia Chairman, Dhafer Ayed Al Ahbabi, said, "Taking ownership of Al Ain Water's production in Saudi Arabia, the GCC's largest consumer market, represents a significant milestone in Agthia's regional growth. The acquisition provides Agthia with the facilities, network and talent that will allow us to grow Al Ain brand across the Saudi Arabian market. Over the coming years, Agthia plans to expand its operations in Saudi Arabia, leveraging its operational and industry expertise to develop a thriving water business as part of our commitment to deliver sustainable growth for our shareholders."
Tariq Al Wahedi, Acting Chief Executive Officer of Agthia, said, "Regional expansion, especially in our water business, is a core part of our strategy. The ability to produce and distribute Al Ain Water in the GCC's largest consumer market will further strengthen our position as a leading food and beverage group in the region."
"We are pleased to close this transaction with Agthia, a company that can build upon our 30 years of history and continue to provide our customers and consumers with the best products. Finding a trusted partner to pursue these objectives and to take the business to its next level of growth and development was a priority. This transaction will offer genuine opportunities to the employees and provide them with the prospect of working for one of the GCC's leading companies," said Hassan Alireza, Managing Director of Delta Marketing Company.
Agthia reported a net profit of AED254 million in 2016, an increase of 10 percent from the previous year, with net revenues rising by 8 percent to over AED2 billion. The Group's water business represented 32 percent of total revenues in 2016 at AED652 million, a 20 percent rise on 2015.
Source: Emirates News Agency