The Abraaj Group is to acquire a 100 per cent stake in Fan Milk International (FMI), a West African manufacturer and distributor of frozen dairy products and juices.
Established over 50 years ago, FMI currently operates through subsidiaries in the rapidly growing markets of Ghana, Nigeria, Togo, Ivory Coast, Benin and Burkina Faso. The company has built and controls a unique and fully integrated regional manufacturing and distribution cold chain network, as well as a broad portfolio of convenience food and beverage brands that reaches over 31,000 end-sales points. 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 projected private 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 will work alongside the company’s 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 (pictured), founder and group chief executive of the Abraaj Group, says: “This is 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. The Abraaj Group has now invested USD2.2bn into 69 partner companies across Africa making us one of the most active, long term investors on the continent.”
Preben Sunke, chairman of Fan Milk International, says: “Having started as a family business more than five decades ago, we are extremely proud to have built both a strong business and a platform on which to take the company further on the African continent.”
The transaction is expected to close by the end of November this year. Freshfields Bruckhaus Deringer acted as legal advisors to The Abraaj Group. Norton Rose Fulbright acted as legal advisors to Fan Milk International.
