Edita Food Industries S.A.E. (EFID.CA on the Egyptian Exchange & EFID.L on the London Stock Exchange), a leader in the Egyptian packaged snack food market, announced today that it is entering the frozen bakery segment in Egypt through the acquisition of Fancy Foods.
Building upon the Company’s track-record of creating successful and leading brands, the transaction is supported by Edita’s superior research and innovation capabilities. The penetration of the frozen bakery segment, enabled by the Company’s large-scale infrastructure and adaptive business model, will allow Edita to capture untapped demand for fresh and ready-to-bake pastry products, expanding the Company’s reach into consumer homes. Edita will play a pivotal role in growing the Egyptian frozen bakery market, a lucrative segment that to date remains underpenetrated and out of step with consumer needs for affordable and ready-to-bake items.
Commenting on the transaction, Edita Chairman Eng. Hani Berzi said: “Edita recognizes the tremendous potential in the Egyptian frozen bakery market and is committed to the long-term growth of this segment. Through our experience and benchmarking of comparable markets, this opportunity creates unbound synergies that will help us deliver significant value to customers and shareholders alike. Edita’s extensive distribution network and trusted brands will play a key role in boosting penetration and increasing market share as the Company expands into a new segment and offers consumers a unique value proposition. The deal equips the Company with the necessary frozen technology infrastructure, marking a significant step in applying our R&D to complementary ventures, while capitalizing on our market-leading portfolio of proprietary brands,” Berzi concluded.
The investment entails a 100% acquisition of assets, encompassing two full production lines and other machinery, in addition to land, property and a distribution arm. Furthermore, as part of the agreement Edita has acquired the technical know-how and recipes for a range of frozen bakery SKUs.
Investment bank, Zilla Capital, served as a financial advisor to Edita on the transaction, while the MENA-based law firm of Matouk Bassiouny served as legal counsel.
Ms. Menna Shams El Din
Head of Investor Relations & Corporate Affairs
T: +202 3851-6464 | M: +2010 0 154 2428 | firstname.lastname@example.org