Auf Group acquires majority stake in local snacks player
Auf Group makes its first acquisition of the ADQ era: Egyptian food outfit Auf Group has acquired a 75.5% stake in Modern International Confectionery Co (MICC), Chief Marketing Officer Rasha Ghaly confirmed to Enterprise. Auf Group declined to make public the value of the transaction. The acquisition comes less than a month after Abu Dhabi wealth fund ADQ acquired a 60% stake in the company for EGP 2.9 bn via its F&B subsidiary Agthia.
The two companies already had a relationship: MICC was already a supplier to Auf Group prior to the acquisition, according to its website.
What does MICC do? The company produces a wide range of pretzels as well as soft and hard candies.
More money, more pretzels: Auf Group plans to invest USD 400k in MICC to expand production of its pretzel line and other products, as well as increase exports, Ghaly said.
And a healthy makeover: Auf plans to offer in the future “healthier versions of [MICC brand] snacks including biscuits and wafers,” she said.
REMEMBER– Auf plans to invest EGP 60 mn in 2022 to boost its manufacturing capacity, Ghaly told us following its acquisition by Agthia in July. Auf will first target upping regional exports and will follow that up with USD 5-7 mn of investment in 2023 as it expands in the Gulf, she said.