UAE-based food and beverages company Agthia Group has secured board approval for the acquisition of a majority holding in Nabil Foods, a frozen and chilled processed protein products producer.

With more than 600 individual product lines, Nabil Foods processes 43,000tpa of protein products that are distributed in more than 20 local and international markets.

Nabil Foods frozen and chilled products portfolio includes beef, chicken, pastries, desserts and ready meals.

Pending regulatory and shareholders approvals, the deal will see Agthia acquire an indirect 80% stake in Nabil Foods, including a 60% stake from ADQ for a convertible instrument and a further 20% stake from Ideal Holding.

The 60% interest represents a value of AED394m ($107m).

With this acquisition, Agthia has forayed into the processed protein space. The deal also allows Agthia to gain access to new revenue streams, as well as the opportunity to expand its product offering in the regional frozen and chilled processed meat sector.

Agthia Group CEO Alan Smith said: “As we continue to expand into new profitable business lines in the food and beverage industry, our vision is to cement Agthia’s position as a mark of quality in the region while fuelling product innovation in the sector.

“The acquisition of Nabil Foods, once completed, would represent another step towards meeting our ambitions; it would be an accretive acquisition for both the business and our shareholders, an expansion into a growing sector with high-quality product offerings and a mutual commitment to innovation aligned with evolving consumer trends.

“Agthia’s balance sheet will be further strengthened and capitalised following completion of this acquisition, which will enable the company to continue to pursue its growth strategy.”

Nabil Foods research and development capabilities are also expected to complement Agthia’s research and development efforts.

For this deal, Rothschild & Co and Freshfields Bruckhaus Deringer served as advisers to Agthia.