Multinational cooperative Arla Foods has made an acquisition offer for Egypt’s Arabian Food Industries Company (Domty).
Arla Foods has submitted a non-binding offer for the majority of the shares in Domty, with a price per share of 31.48 EGP, corresponding to a value of 8,897 million EGP (€168.22 million) for 100% of the shares.
However, the El Damaty family is likely to continue with a shareholding in the company, with Mohamed El Damaty as its chief executive officer.
Egyptian-based Domty is a listed company with approximately 4,000 employees and two production sites in the country.
Arla added that it seeks to delist the company from the Egyptian Stock Exchange.
The non-binding offer is subject to satisfactory due diligence, definitive documentation, and corporate and regulatory approval, the company noted.
Domty: A Leading Player
Kim Villadsen, SVP for MENA in Arla Foods, stated, “The dairy market in Egypt is substantial, Domty is a leading player in that market, and the company is well aligned with our strategy in Egypt.
“We are now looking at the details before deciding whether to proceed with purchasing the business.”
Arla Foods enjoys a long-standing and strong presence in the Middle East and North Africa, which is also its largest commercial area outside of Europe.
“Expanding into Egypt is a natural step in our journey to better serve all our MENA consumers, reinforcing our commitment to regional production and ensuring that we continue to deliver high-quality dairy products tailored to regional preferences,” Villadsen added.
In August, the Danish dairy firm announced that it expected full-year revenue to come in between €13.4 billion and €13.9 billion, despite seeing first-half sales decline, year on year.
