The Danish dairy group Arla has made a DKK 1.25 billion non-binding bid for the majority stake in the Egyptian food company Arabian Food Industries Company (Domty), the group announced in a press release on Wednesday.
Domty’s current owners – the Damaty family – are expected to remain part of the ownership circle, with the current managing director also to remain in place, should Domty accept the offer.
Founded in 1990, Domty produces and sells dairy products, bread and juice.
“Domty is a leading player in the market, and the company fits well with our strategy for Egypt,” said Kim Villadsen, senior vice president for Arla’s business in Africa and the Middle East.
“We are now examining the details of the company in more detail before we decide whether we want to go ahead with the purchase.”
Africa and the Middle East are Arla’s largest commercial business regions outside Europe.
“An expansion of our business into Egypt is a natural step in our ambition to deliver to all our consumers in the region,” said Villadsen.
“It supports our commitment to regional production, which ensures that we can continue to deliver high-quality products tailored to regional preferences.”
Domty’s revenue in 2023 was just over one billion kroner, and profit approximately DKK 64 million.
Arla’s total revenue in 2023 was DKK 102 billion, and profit was DKK 2.97 billion.
