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Emerging Capital Partners invests in African tuna processing and distribution company

Emerging Capital Partners, a Washington, DC-based private equity firm focused on investing across the African continent, has acquired a minority stake in Thunnus Overseas Group, a group

Emerging Capital Partners, a Washington, DC-based private equity firm focused on investing across the African continent, has acquired a minority stake in Thunnus Overseas Group, a group of companies engaged in tuna processing and distribution in Côte d’Ivoire and Madagascar.

The investment of USD28.9m (EUR21.4m) – made in common shares, convertible notes and a senior loan – will enable Thunnus to increase production, consolidate sales efforts, and reorganise finances.

‘Thunnus is a clear leader in the canned tuna market, particularly in France, Germany and Belgium,’ says Tom Gibian, chief executive officer of Emerging Capital. ‘The company has a reputation for product quality, strong sales and superior customer service. It is in a prime position for growth through new product development and expansion into other European markets like Spain and Italy."

Thunnus products are primarily exported to European retailers, under premium brands or as private-label brands. In France, it is the leader in the canned tuna market with a 25 per cent market share. In 2008, the company processed, packaged and sold about 50,000 tons of tuna, which generated approximately USD166m (EUR123m) in revenues.

Emerging Capital expects to increase shareholder value by enabling Thunnus Overseas to better integrate production planning and procurement opportunities among its Ivorian and Malagasy operations. The company’s sales force will also be consolidated, and Thunnus will seek to diversify its product range to address additional market segments. Emerging Capital also plans to assess the company’s financial structure and rebalance its long term and short term financing.

Thunnus employs approximately 3,200 people in Côte d’Ivoire and Madagascar. The company is an aggregation of six operating companies and holdings under the leadership of Mohamed Khachab, including: Pêche et Froid Côte d’Ivoire and Scodi, Ivorian tuna processing companies; PFOI, a Madagascar-based tuna processing business; and Pêche et Froid International, Scodi International and Conserverie des Cinqs Océans, the corresponding marketing and distribution companies.

‘Thunnus has several competitive advantages in terms of location, diversified sources of tuna, and production costs," says Vincent le Guennou, executive vice president of Emerging Capital. "These factors – combined with world-class business practices – should enable it to aggressively expand its market share in Europe, the world’s largest importer of canned tuna and also in the Middle East and North Africa."

The investment in Thunnus is Emerging Capital’s second in the African food processing sector. The firm continues to hold a stake in Agromed, a dairy processing and production company based in Tunisia.

Emerging Capital Partners says it is the first private equity firm to raise more than USD1.5bn to invest in companies across the African continent.

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