Agthia Group has signed an agreement to fully acquire Al Bayan Group of Companies, a leading bulk water player in the UAE.
Financial details of the transaction have not been disclosed.
The transaction is expected to close this month once it receives regulatory approval and meets other closing conditions.
Established in 1999, it has strong presence in the UAE, especially in the Northern Emirates where it has most of its assets.
The firm also has been operating a manufacturing facility in Oman since 2002.
Al Bayan has manufacturing and warehousing facilities in Dubai and Ajman, while Agthia has facilities in the Abu Dhabi emirate, and the acquisition can pave way to synergy in terms of reducing production costs, optimized 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 5 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."
Meanwhile, Agitha, which manufactures Al Ain bottled water, expects to become a leading brand in the UAE by this year end.
As part of this plan, it has invested AED90m to bolster capacity - Al Ain will produce 52 million cases of bottled water this year as against 32 million cases last year.
The facility in Al Ain has a capacity to generate up to 72,000 bottles of water in an hour. Earlier, it was about 5,000 to 10,000 bottles of water in an hour.
