Arla Foods makes bid for food and beverage company in Egypt

Arla Foods has made a non-binding offer for the majority of the shares in the Arabian Food Industries Company (Domty), a listed company with approx. 4000 employees and two production sites in Egypt.

On 15 October 2024 Arla Foods submitted a non-binding offer for the majority of the shares in the Arabian Food Industries Company (Domty) from Egypt, with a price per share of 31.48 EGP, corresponding to a value of 8,897 million EGP (implying 183mUSD based on today’s exchange rate) for 100% of the shares. It is however expected that the current owners, the El Damaty family, will continue with a shareholding alongside Arla and Mohamed El Damaty will continue as the CEO. It is Arla's intention to delist the company from the Egyptian stock exchange.

The non-binding offer is subject to satisfactory due diligence, definitive documentation, corporate and regulatory approval.

”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,” says Kim Villadsen, SVP for MENA in Arla Foods.

Arla Foods has a long-standing and strong presence in the Middle East and North Africa, which is the company's 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,” says Kim Villadsen.

As Domty is a listed company, the non-binding offer is public information. Arla Foods has no further comments on the offer.