Edita Food Industries has signed an agreement to acquire 100% of frozen bakery producer Fancy Foods, it said in a statement (pdf) yesterday. The transaction will see the company enter the frozen bakery segment for the first time, giving it access to a largely untapped market, it said.

Fancy Foods:The company produces a range of frozen pastries, bread and desserts from its Sixth of October factory, which has two production lines. The transaction gave the company an enterprise value of EGP 380 mn.

Edita plans to invest EGP 400 mn to expand the business over the coming year, the company’s IR head Mena Shams El Din told Enterprise yesterday. “The segment remains young in Egypt but we plan to upscale Fancy Foods’ manufacturing capacity to capture untapped demand,” she said.

What they said:“[The acquisition] made perfect sense for us,” said Shams El Din. “Fancy Foods has huge potential for growth and it has a lot of synergies between Editas existing business lines.”

Advisors: Zilla Capital provided financial advice to Edita while Matouk Bassiouny & Hennawy served as legal counsel.

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