Development Partners International (DPI), an African private equity specialist with USD1.1 billion under management, is to invest EGP300 million through its ADP II fund in Egyptian household appliances and electronics retailer B.TECH.
B.TECH operates a fast-growing portfolio of 67 retail stores across Egypt with a network of 362 wholesale dealers supported by three main warehouses and 57 after-sales service centres. B.TECH distributes leading household appliances and consumer electronics products including leading global brands such as Indesit, Ariston, Miele, Apple and Braun. B.TECH has consistently grown its business at an impressive 18% annualised sales growth over the last five years driven by growing demand for consumer durables and electronics from Egypt's middle class. Sales are supported by B.TECH’s market leading installment payment system which has served over 700,000 Egyptians to date. B.TECH’s unique combination of physical retail, installment payments, and a fast-growing online presence supported by an advanced warehouse and after-sales capability gives the business a dominant position serving customers across a broad demographic range.
Runa Alam, CEO and co-founder of DPI, says: “Our investment thesis is to back strong companies which serve the developing needs of the emerging middle class across Africa. B.TECH is our first investment in Egypt and has a proven track record in serving the needs of the emerging and established middle classes. We believe the shift from traditional towards organised retail and the increasing formation of new households will support increasing consumption of durables and open new markets and channels for the business.”
Adding to this, DPI deal partner Sofiane Lahmar says: “B.TECH has a strong track record of growth and profitability, an excellent management team, and a clear long term strategy. We are excited to partner with Dr. Khattab and his team and look forward to working together with B.TECH to continue the company’s growth story in Egypt and expand outside of Egypt in other African countries.”
Dr Mahmoud Khattab, Chairman and CEO of B.TECH says: “B.TECH has grown over the last ten years to be the leading household appliances and consumer electronics retailer in Egypt with a distribution platform that is second to none. B.TECH’s unique integrated business model offers a strong value proposition to its customers in terms of range of products, affordability and accessibility across the country both offline and online. The investment and partnership between our company and DPI demonstrates the outstanding work accomplished by our team and highlights the growth potential of B.TECH in Egypt and Africa”
Matouk Bassiouny and Norton Rose Fulbright LLP acted as legal counsel to DPI on the transaction.
B.TECH was advised by EFG Hermes, Zulficar & Partners and White & Case on the transaction.
