Abu Dhabi-based Agthia Group, a leading food and beverage company, has signed a purchase agreement for 100 per cent of the shares in the water business of Delta Marketing Company, based in Saudi Arabia, producing “Al Ain” brand water.

The transaction is expected to be completed by the first quarter of 2017, following regulatory approvals and other closing conditions, said a statement from the company.

The acquisition enables Agthia to enter the Saudi market for the first time with its Al Ain water brand, the leading bottled water brand in the UAE, reflecting the group’s strategy to expand in the GCC and become a region-wide player, it said.

Delta’s water business has been present in Saudi Arabia for three decades and is a growing and cash-generating operation. The transaction helps to fast-track Agthia’s objective of establishing a fully-fledged water production presence in kingdom, it added.

Eng Dhafer Ayed Al Ahbabi, chairman, Agthia, said: “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,” he added.

Iqbal Hamzah, CEO, Agthia Group, said: “Acquiring Delta with their Al Ain water brand is a very important milestone for us. Regional expansion, especially in our water business, is a core part of our strategy.”

“This transaction provides a significant step change in our business. Al Ain will now be manufactured, distributed and sold in the three largest GCC economies – the UAE, Kuwait and Saudi Arabia thus enhancing Al Ain image as a truly regional water brand,” he added.

Hassan Alireza, managing director of Delta Marketing Company, added: “I am pleased to announce that we have entered into a definitive agreement with Agthia to sell Delta Water Factory Company (DWFC), the water division of Delta Marketing Company.”

“We have full faith in Agthia building on our rich history of 30 years in the water market, and take our products and brands to the next stage. Over the coming weeks, we will work closely with Agthia to complete the transaction and ensure the successful transition of DWFC to its new owner,” he said.

“This transaction will offer genuine opportunities to the employees with broader development prospects as part of a GCC Group that firmly focuses on growth, and will benefit Saudi Arabia by bringing foreign investments,” he concluded.

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 its water business. Earlier this year, the company entered into a joint venture in Kuwait to establish a water bottling plant, which is expected to be completed in 2017, said a statement.

Last year Agthia also acquired Al Bayan Water Company a leading player in the 5 gallon bulk water segment in the UAE with a presence also in Oman. Alpin, a natural spring water brand of Agthia is produced at its factory in Turkey, it stated. – TradeArabia News Service