Arla to acquire Egyptian food company

Danish dairy conglomerate Arla has offered 1.25 billion DKK for the majority stake in Arabian Food Industries Company (Domty), an Egyptian food company. According to a press release, the Damaty family, current owners, are expected to retain a share in the ownership. The aim is also for the current CEO to remain in position post-purchase. Domty, established in 1990, produces dairy products, bread, and juice and is a market leader. The potential acquisition would expand Arla’s business in an important commercial area outside Europe, furthering its strategy to supply consumers in the region with high-quality products tailored to regional preferences. The bid is non-binding, and Arla will now closely examine the company’s details before making a final decision. Domty’s revenue last year was over 1 billion DKK, with a profit of around 64 million DKK, a modest portion of Arla’s total 2023 revenue of 102 billion DKK.