October 16, 2024
Dairy giant Arla Foods has made a non-binding offer to acquire a majority stake in Egyptian food and beverage company Arabian Food Industries, commonly known as Domty, for $183 million. The offer values Domty at E£8.9bn ($183m), with a proposed share price of E£31.48 ($.64) per share.
Domty, employing around 4,000 people with two production sites, reported sales of E£7.5bn and a gross profit of E£1.58bn in 2023. Arla plans to delist the dairy and juice business from the Egyptian stock exchange, but the El Damaty family is expected to retain a shareholding, with Mohamed El Damaty remaining as CEO.
Kim Villadsen, Arla’s senior vice-president for the Middle East and North Africa (MENA), stated, “The dairy market in Egypt is substantial, and Domty is a leading player well-aligned with our strategy.” Arla is currently evaluating details before finalizing the acquisition.
The MENA region is Arla’s largest market outside Europe, contributing €996m ($1.09bn) in revenue in 2023.
