UAE-based food and beverage supplier Agthia Group has signed a 100% purchase agreement for the shares in the water business of Delta Marketing Company, based in Jeddah, Kingdom of Saudi Arabia.
The company produces ‘Al Ain’ drinking water. The transaction is expected to be completed in the first quarter of 2017, following regulatory approvals and other closing conditions.
The acquisition enables Agthia to enter the Saudi Arabia market for the first time through the bottled mineral water brand, reflecting the group’s strategy to expand in the GCC.
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Delta’s water business has been present in Saudi Arabia for three decades. The transaction helps to fast-track Agthia’s objective of establishing a fully-fledged water production presence in KSA.
Commenting on the acquisition, Agitha chairman HE Eng Dhafer Ayed Al Ahbabi said in a statement: “This agreement is an important step in carrying out our commitment to deliver sustainable growth for our shareholders through international expansion and acquisitions. 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.”
Earlier this year, Agthia entered into a JV in Kuwait to establish a water bottling plant, which is expected to be completed in 2017.
Last year Agthia also acquired Al Bayan Water Company based in the UAE with presence in Oman as well. Alpin, a natural spring water brand of Agthia is produced at its factory in Turkey.
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