Emerging markets private equity firm Actis has invested USD102m in Edita Food Industries, a snack food business in Egypt.
Edita is the largest independent snack food business in North Africa with a suite of iconic brands including Twinkies, Hohos, Molto, Todo and Bake Rolz. It sells around 2.5 billion pieces of croissants, cakes and wafers a year, with an average price point of 10 US cents.
For Actis this investment builds on its three prior successes in the North African food sector: Mo’men, El-Rashidi El-Mizan and Poulina.
The Egyptian snack food market is growing rapidly. Despite the Arab Spring’s macroeonomic repercussions Edita’s revenues grew at a compound rate of 21 per cent per annum since 2009. With a young and growing population, rising middle class and changing lifestyles, there is a strong appetite for quality, branded snack foods.
Rick Phillips, head of consumer at Actis, says: “This investment demonstrates our long term commitment to Egypt’s prosperity and our confidence in this important market. Actis continues to proactively pursue investments in high quality, well-managed businesses across the region.”
Sherif Elkholy, Actis director in Cairo, says: “We are delighted to be investing in such a high quality Egyptian business, making this our fourth investment in the North African food sector. Under Mr Hani Berzi’s leadership the company continues to thrive with its recent acquisition of iconic brands and ambitious plans to expand the business. We are confident that our partnership will be a great success.”
Berzi says: “We are delighted to welcome Actis on board as our new partner in Edita. We received numerous approaches from interested parties, but chose Actis because of its pan-emerging markets consumer sector expertise, and proven commitment to supporting strong resilient businesses regardless of economic cycles and political unrest. We look forward to continued growth and development with Actis in the next chapter in Edita’s journey.”
