Edita Food Industries, a leading Egyptian snack food company, has secured two medium-term loans worth EGP 390m to finance its acquisition of Fancy Foods, a frozen food producer. The loans have a maturity of 7 years and will be used to cover 50% of the acquisition cost and to refinance the necessary investments for Edita Frozen Food Industries, the new name of Fancy Foods after the acquisition.
The acquisition is part of Edita’s expansion strategy in the frozen food market, which has a high growth potential in Egypt. Edita plans to increase the capital of Edita Frozen Food Industries by about EGP 400m and to pump investments worth EGP 800m this year.
Edita reported a strong performance in the first half of this year, with a net profit of EGP 809.8m, up by 116% from the same period last year. The company’s sales also increased by 80% to EGP 5.63bn in the first six months of this year.