Cairo, May 30, 2023 – Edita Food Industries S.A.E. (EFID.CA on the Egyptian Exchange & EFID.L on the London Stock Exchange), a prominent player in the Egyptian packaged snack food market, has announced its entry into the frozen bakery segment in Egypt through the acquisition of Fancy Foods. The deal, valued at EGP 380 million, marks a significant step for Edita in creating new revenue streams and expanding into a high-growth potential market.
With a strong track record of developing successful brands, Edita is leveraging its superior research and innovation capabilities to support this strategic move. The company’s expansive infrastructure and adaptable business model will enable the penetration of the frozen bakery segment, catering to the untapped demand for fresh and ready-to-bake pastry products. This expansion allows Edita to extend its presence into consumers’ homes and tap into a lucrative market segment that has remained underpenetrated and disconnected from consumer preferences for affordable and convenient baked goods.
Eng. Hani Berzi, Chairman of Edita, expressed the company’s confidence in the potential of the Egyptian frozen bakery market and its commitment to long-term growth in this segment. He highlighted the synergies that arise from leveraging Edita’s distribution network and trusted brands to enhance market penetration and gain market share. Berzi emphasized, “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.”
The acquisition includes a 100% takeover of assets, comprising two full production lines, machinery, land, property, and a distribution arm. Additionally, Edita has acquired the technical know-how and recipes for a range of frozen bakery stock-keeping units (SKUs).
To facilitate the transaction, Edita enlisted the services of Zilla Capital as its financial advisor, while Matouk Bassiouny, a MENA-based law firm, served as legal counsel.
By entering the frozen bakery segment, Edita is poised to expand its offerings and cater to evolving consumer preferences in Egypt. The company’s investment in Fancy Foods provides the necessary resources and expertise to capitalize on the growing demand for convenient and high-quality baked goods, creating new opportunities for both customers and shareholders.