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AGTHIA signs MoU to buy Abu Dhabi water company

ABU DHABI — Emirates Foodstuff & Mineral Water Company (AGTHIA) has signed an MoU to acquire Ice Crystal, a leading 5-gallon local water brand based in Abu Dhabi. The deal will see Al Ain Mineral Water Company, a fully-owned subsidiary of AGTHIA, managing the production and distribution of Ice Crystal water throughout Abu Dhabi, and eventually to the rest of the UAE.

AGTHIA currently controls Al Ain Mineral Water Company, Grand Mills for Flour and Animal Feed Company, and is also the exclusive distributor for Mother Parkers Tea & Coffee Inc., and will add Ice Crystal to its portfolio as a stand-alone division managed and distributed by Al Ain Mineral Water Company.

"As the leading water expert in the region, this acquisition gives us immediate access to the 5-gallon home delivery market, which currently accounts for 60 per cent of the total water sales throughout the UAE. This figure is expected to double in growth by 2010, Fasahat Beg, General Manager of Al Ain Mineral Water.

Ice Crystal has an excellent consumer reach and reputation in the market, and it offers us entry into the growing bulk water segment in the UAE. We fully intend to utilise the technical expertise of Al Ain Mineral Water in the area of water purification and bottling in order to build on the existing Ice Crystal brand, while we continue delivering the highest quality product to our expanding UAE consumer base,"explained Fasahat Beg.

Ice Crystal was established in October 1998, and currently distributes its products mainly in Abu Dhabi with a strong presence among institutions. The acquisition of Ice Crystal is a strategic move by Al Ain Mineral Water to gain access to the sizeable and fast growing 5-gallon bottled water market.

"The acquisition is definitely a step forward for AGTHIA in terms of the expansion of our product portfolio, and a part of our strategy to establish Al Ain Mineral Water Company as the premier water supplier in the UAE," commented AGTHIA Chairman, Rashid Al Hajeri.

"Al Ain Mineral Water currently holds 24 per cent share of the UAE bottle water market, and Ice Crystal will allow us to consolidate and improve our position within the total packaged water business, by entering the growing bulk segment. We fully intend to become the leading player in all formats of bottled water in the UAE," confirmed Ilias Assimakopoulos, Chief Executive Officer of AGTHIA.