(MENAFN- Khaleej Times) The Abraaj Group, a leading Dubai-based private equity investor managing $7.5 billion of assets, announced on Wednesday an agreement to acquire a 100 per cent stake in Fan Milk International (FMI), West Africa's market leading manufacturer and distributor of frozen dairy products and juices.
The acquisition of Fan Milk is expected to close by the end of November, Abraaj said without giving any financial details of what it had billed as a landmark transaction.
Abraaj's latest expansion bid follows its acquisition of Aureos Capital more than year ago to emerge as a buy out firm with around $7.5 billion in assets under management and presence in over 30 countries.
FMI currently operates through subsidiaries in the growing markets of Ghana, Nigeria, Togo, Ivory Coast, Benin and Burkina Faso. FMI, through its subsidiaries, currently sells over 1.8 million products on a daily basis across West Africa.
FMI's range of frozen dairy and beverage products supply some of the world's fastest growing consumer, youth and urban markets with projectedprivate consumption growth rates ranging from 4.2 per cent to 9.9 per cent and GDP growth rates of up to 8.3 per cent across FMI's core, target markets in West Africa. Abraaj said FMI is well positioned to embark on further penetration and growth into new African markets. "Abraaj will work alongside the company's strong, locally experienced management team to tap the ongoing rise of the African consumer class, in FMI's existing market reach of over 250 million consumers and beyond."
Arif Naqvi, founder and group chief executive of the Abraaj Group, said the acquisition was a landmark deal for both African Private Equity and the Abraaj Group. "The considerable investment and growth plans we have for FMI mirror the scale and depth of investment opportunities that we believe are now abundant on the African continent. Africa is witnessing the rise of a burgeoning middle and consumer class, so the acquisition of FMI is an extremely exciting and compelling investment opportunity. FMI's portfolio of leading consumer food brands perfectly complements our African investment strategy."
He said the Abraaj Group has now invested $2.2 billion into 69 partner companies across Africa making us one of the most active, long term investors on the continent. "Abraaj's deeply embedded environmental, social and governance principles will also ensure we create long term, social benefits for FMI's local communities alongside the strong financial returns we aim to generate," said Naqvi.
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