Nestlé Egypt has signed an agreement to acquire Egypt-based instant coffee manufacturer Caravan Marketing Company.

The acquisition is a part of Nestlé's strategy to invest in Egypt and enhance the development of its soluble coffee sector.

Nestlé's Egypt chairman and chief executive officer Yasser Abdulmalak said: “We are pleased to conclude the signature of this agreement. Our investment and expansion plans in Egypt reflect the importance of this market to us.

"In the last 5 years, Nestlé has made investments close to EGP1bn ($0.05bn) in manufacturing and distribution facilities and skill development.

"Nestlé has made investments close to EGP1bn ($0.05bn) in manufacturing and distribution facilities and skill development."

"We will continue to invest in the Egyptian market and this acquisition comes as a reaffirmation of that.”

Nestlé expects that the deal will leverage the complementary strengths of its brand Nescafé and Caravan's brand Bonjorno.

Founded in 2003 as a marketing and distribution company, Caravan currently manufactures and retails a range of soluble coffee products, which are developed in its facility.

Nestlé Egypt operates two factories and employs more than 3,000 people.

Financial details of the acquisition have not been disclosed.