Agthia ​Acquires Water ​Business in ​Saudi ​Arabia

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Agthia ​Acquires Water ​Business in ​Saudi ​Arabia

Agthia Group, a leading food and beverage group in the UAE, has completed its acquisition of the water business of Delta Marketing Company, providing Agthia with a fully-fledged water business in Saudi Arabia.

f3d9e4ac47654c88b3f94c60709aff27.pngAgthia had signed a share purchase agreement to acquire a 100 percent stake in the water business of Delta Marketing Company in November 2016.

Agthia will now own production of Al Ain Water, the UAE’s leading bottled water brand, in Saudi Arabia.

The company has three water brands mainly in the Western Region of the country: 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.

Tariq Al Wahedi, acting chief executive officer of Agthia; Hassan Alireza, managing director of Delta Marketing Company; Fasahat Beg, executive VP – water, beverage, dairy; and Ahmed Anwar, acting country manager-KSA at Agthia; marked the conclusion of the transaction with a ceremony attended by employees at the business’ manufacturing facility in Jeddah.

Eng Dhafer Ayed Al Ahbabi, Agthia chairman, 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.”

Al Wahedi added: “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.”

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 strategy is expanding the group’s water business.

Last year, Agthia entered into a joint venture in Kuwait to establish a water bottling plant, which is expected to be completed later this year. Agthia also owns two other water brands: Al Bayan, a leading player in the 5-gallon bulk water segment in the UAE and Oman; and Alpin, a natural spring water produced in Turkey.

Read more at: Trade Arabia

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