UAE's Agthia plans $136 mln Saudi acquisitions by 2020

Abu Dhabi-based food and beverages company Agthia Group will invest more than AED 500 million ($136.24 million) by 2020 to acquire consumer businesses in Saudi Arabia, The National reported, citing company CEO Tariq Al Wahedi.

The acquisition drive is aimed at expanding Agthia’s regional footprint and adding new revenue streams, as the Kingdom embarks on an economic diversification drive in line with the Vision 2030.

“We want to double our business in terms of revenues in the Kingdom within the next three years. Today in Saudi, we are making AED 140 million [in revenues] and the target is to push that [several-fold] and this can only be done through acquisitions,” he told the daily.

The Abu Dhabi-listed company has so far invested AED 200 million in the Kingdom. Last March, it purchased Saudi-based Delta Water Company, which produces Agthia’s Al Ain water brand in the Kingdom.

Agthia, owned 51 percent by Abu Dhabi government-owned Senaat, has already lined up financing for expansion and potential acquisitions, the report said.