Agthia strengthens presence in UAE bottled water market with new acquisition

UAE based Agthia Group has signed an agreement to take over Al Bayan Group of Companies to strengthen its bottled water portfolio for an undisclosed amount.

Under the terms of the agreement, three companies under Al Bayan Group including Al Bayan Purification and Bottled Water, Shaklan Plastic Manufacturing and Al Manal Purification and Bottling Mineral Water will be acquired by Agthia, reported thenational.ae.

The firms expect to close the transaction by the end of this month once it receives regulatory approval and meets other closing conditions.

Agthia is the producer of the Al Ain bottled water and expects to bolster its presence in UAE as a leading brand by the end of this year.

Al Bayan has been established in 1999 and has strong presence in the UAE, especially in the Northern Emirates where most of its assets are located.

The firm also has a manufacturing facility in Oman which has been operational since 2002.

While the company operates manufacturing and warehousing assets in Dubai and Ajman, Agthia operates facilities in the Abu Dhabi emirate.

The deal can integrate the portfolio of the firms, thus reducing production costs, optimising usage of distribution fleets and bolstering warehousing capacity.

Agthia chairman Dhafer Ayed Al Ahbabi said: "Al Bayan is a natural fit for Agthia and it complements our portfolio of water brands. This acquisition will further reinforce our leading position in the bottled water category in the UAE, and is a demonstration of our commitment to deliver sustainable profitable growth for our shareholders."

Agthia Group CEO Iqbal Hamzah said: "We are very excited to merge our strengths with those of Al Bayan. As a major player in the 5 gallon bottled water segment in the UAE, Al Bayan is an excellent strategic fit for Agthia, further consolidating our leading position in the UAE water market.

"Al Bayan’s manufacturing capabilities in the Northern Emirates and Oman with an established brand and sales and distribution infrastructure, coupled with Agthia’s manufacturing expertise, sales and marketing knowledge, and its iconic brands, will help unlock the growth potential of the combined business."

Al Bayan Group of Companies chairman and managing director A K Mansoor said: "Al Bayan water business has grown strongly in the last few years, securing a leading position in five gallon bulk water segment, with which I am very proud of. I am confident that this business will thrive under the ownership of Agthia Group, a fast-growing food and beverage company in the region."

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Image: Agthia intends to emerge as a leading brand for bottled water in UAE by year end. Photo: courtesy of Naypong/FreeDigitalPhotos.net.