Egyptian foodmaker, Edita has signed two contracts worth US$12 million with US-based Hostess Brands, LLC.
The two contracts were signed by Hany Barzy, CEO and Managing Director of Edita Food Industries.
Hostess, is one of the largest wholesale bakers and distributors of breads and snack cakes in the United States and makes the well-known Twinkies and Ding Dongs snacks. It was bought by private equity groups in 2013.
In a release to the Egyptian stock market, Edita said one of the contracts involved manufacturing rights for a series of products. The other contract will enable Edita to extend its distribution of some goods it already has rights for to 12 additional countries, it said.
The Arab countries are Algeria, Bahrain, Iraq, Lebanon, Kuwait, Morocco, Oman, Qatar, KSA, Syria, Tunisia, and the UAE.
Moreover, Edita said the contracts would be funded by a 90 million Egyptian pounds medium-term loan on 7 years from the National Bank of Kuwait.