• Arla Foods submitted an offer to acquire a majority stake in Domty, with plans to delist it from the exchange.
• The offer values Domty at USD 176 million, pending due diligence and regulatory approval, with possible exclusion of its baked goods division.
• Domty’s key shareholders plan to sell, while the El Damaty family plan to retain shares,

Domty

What happened? Arla Foods, owners of the Lurpark brand, submitted an offer to acquire the majority of Domty’s shares. Additionally, the Danish company plans to delist Domty from the stock exchange if the deal is successful. 

Domty’s major shareholders have expressed their intention to sell their shares entirely. It is however expected that the current owner, the El Damaty family will continue to retain a portion of their holdings. Additionally, Mohamed El Damaty will continue as the CEO.

The offer is still subject to satisfactory due diligence, definitive documentation, corporate and regulatory approval.

”The dairy market in Egypt is substantial, Domty is a leading player in that market and the company is well-aligned with our strategy in Egypt. We are now looking at the details before deciding whether to proceed with purchasing the business,” says Kim Villadsen, SVP for MENA in Arla Foods.

How much? The offer values Domty approximately at USD 176 million (EGP 8.9 billion) with a price per share of 31.48 EGP.

Latest Updates

What are the latest updates in negotiations? Negotiations between the two companies are still ongoing and with a possibility of the offer price being adjusted. This is if Arla Foods agrees to acquire Domity without its new baked goods division. 

The deal is still pending  institutional and regulatory approvals following the completion of due diligence. Furthermore, Egypt’s Financial Regulatory Authority extended Arla’s due diligence period by 60 additional working days on January 12, starting from January 9. 

Why does this matter? Domty’s baked goods division was the most profitable among its three product divisions in 2024. It made up a gross profit margin of 25.5% of its total segment sales according to Asharq, valuing at EGP 1.9 billion.

Acquisitions

Previous Acquisitions In September 2022, Expedition Investments, based in Mauritius, along with other investors, acquired around 33% of Domty’s shares.

Domty’s ownership structure is divided as follows: 32.91% for Expedition Investments, 24.61% for International Dairy Investment, 15.65% for Yahya Mohammed Awad Bin Laden, and 11.53% for Trevi Holding.

Who are they? Established in 1990, the Arabian Food Industries Company (Domty) is a food and beverage company. It  manufactures a range of white and processed cheeses as well as juice products. In addition, it recently released a bakery product line. 
Meanwhile, Arla is an international dairy company based in Denmark with brands such Lurpark, Puck, and Castello.