Egypt-based bakery group Edita Food Industries has expanded its ownership of Hostess Brands LLC’s HoHo’s, Twinkies and Tiger Tail brands to 12 additional Middle Eastern and North African markets
Edita already owned rights to the brands in Egypt, Libya, Jordan and Palestine. The group will now extend into new markets including Algeria, Bahrain and Saudi Arabia.
The new deal will also see Edita acquire the rights to manufacture and market 11 other Hostess products on a regional basis.
The agreement between the Egyptian snack maker and US packaged cake group will see Edita benefit from Hostess’s technical assistance to manufacture 11 new products, the company said. By enlarging its cake portfolio, Edita said it will “maintain its leadership position” in Egypt and the region more broadly.
Commenting on the transaction, Edita chairman and managing director Hani Berzi said: “Our ability to swiftly capture this opportunity… underscores not just the strength of our management team, but also our commitment to create new shareholder value through expansion opportunities.
“The extension of our … ownership footprint beyond the existing four markets, and the roll out of new Hostess Brands products, will help Edita further consolidate its position as the leader in the packaged snack food market both locally and regionally.”
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Berzi added the transaction marks a “new” phase in Edita’s regional expansion strategy as it looks to grow MENA sales beyond the 6% contribution revenue from the region made to its 2014 total sales.
Financial details were not released. Edita said the transaction will be financed by a medium-term facility.