Edita Food Industries has taken a 49% stake in Iraqi packaged snacks peer Tuama Jebur Abbas (TJA)
The Egyptian manufacturer, listed in London and Cairo, has paid $8m for the stake in the Baghdad-based company, a deal which it described as a “strategic partnership”.
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It said the establishment of its first local production presence in the country – Edita Iraq – is a “key milestone in Edita’s regional growth strategy”.
Edita manufactures branded baked snacks including cakes, wafers and biscuits under brands such as Todo, Molto and Bake Rolz. The vast majority of its revenue is generated in Egypt but the company is increasingly interested in exports.
In its Q3 2024, results, released in November, it was revealed export revenue had increased by 71.9% year-on-year to EGP533.1m ($10.59m).
Established in 2018, TJA is a family-owned snack manufacturer.
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By GlobalDataUnder the terms of the partnership, Edita Iraq will be established through a UAE-based holding company, granting Edita management control. The acquisition includes a factory equipped with three production lines, two for cakes and one for biscuits.
The partnership will implement a “technical know-how and manufacturing assistance agreement, focusing on maximising production capacity, efficiency and control”. Additionally, a trademark agreement will secure the rights to launch Edita’s brand portfolio in Iraq, broadening the company’s product range and market presence.
Edita aims to “leverage its established brand equity” through exports, including the Molto and Tiger Tail brands, which generated approximately $10.2m in 2023 sales.
It said it intends to invest more than $27m in the market over the next three years.
Company CEO Hani Berzi said: “Today marks a pivotal moment in Edita’s regional expansion strategy, leveraging our proven recipe for entering underserved markets and creating new segments through our brands, technical know-how, and innovation.
“Iraq’s growing economy and untapped snack-food market present a unique opportunity for us to establish a national champion. We’re excited to partner with TJA, whose local expertise will help us bring Edita’s innovation to Iraqi consumers.”
Qusay Tuama Jebur, managing director of TJA, said: “This partnership with Edita marks a significant milestone in our journey, combining our expertise with Edita’s capabilities to enhance production and deliver products that meet the highest quality standards. Together, we are opening new doors of opportunity in local and regional markets, paving the way for sustainable success.”
