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Africa private equity firm DPI acquires stake in packaging business

Development Partners International (DPI), an African private equity firm with USD1.1 billion under management, has acquired through its ADP II fund a stake in Général Emballage, a packaging business in Algeria, which specialises in the manufacturing and processing of corrugated cardboard.

ADP II closed in March 2015 at USD725 million, significantly above its target. It is DPI’s second closed fund.
Under the agreement, a consortium comprising of ADP II and DEG- Deutsche Investitions- und Entwicklungsgesellschaft has acquired a 49 per cent stake in Général Emballage from existing shareholders, AfricInvest and the original founders the Batouche family for a total amount of approximately USD55 million.
Général Emballage is a cardboard manufacturer and processor and has a well-diversified and blue-chip client base, with more than 1,000 clients in various sectors, ranging from international businesses such as Henkel, Coca Cola and Heineken to local businesses active across the food processing, pharmaceutical, cosmetics, and household appliances and electronics sectors.
Général Emballage has experienced significant growth over the last 10 years under the leadership of its chairman and founder Ramdane Batouche and now comprises three manufacturing sites and 1,150 people with a market share of over 40 per cent. This growth has been driven by an attractive and growing packaging market in Algeria, the company’s high quality product portfolio, strong customer service, and successful addition of incremental capacity.
DPI believes that the increasing consumption of consumer goods by Algeria’s growing middle class and the shift towards more local production across consumer industries will drive continued expansion of the sector in the coming years and that Général Emballage is well positioned to capture this growth. 
DPI partner Sofiane Lahmar says: “We see a tremendous growth opportunity for Général Emballage not only in Algeria but also through expansion in African and Mediterranean markets. The business is set to continue its strong track record of growth and profitability and consolidate its position as Algeria’s leading player in the corrugated cardboard packaging sector. We are very pleased to partner Founder Ramdane Batouche and his high-quality management team and to support the business in its future growth story in Algeria and Africa.”
Runa Alam, CEO and co-founder of DPI, says: “DPI is committed to making investments in Algeria, having previously invested in Biopharm, the leading local pharmaceutical company in Algeria. The investment in Général Emballage marks our first investment in Algeria from our ADP II fund and underpins our truly pan-African approach to investing into industries and markets that benefit from the growing middle class. The transaction adds to our geographical and industry diversification for the ADP II portfolio, concentrating on finding quality assets and sponsors in line with our investment strategy in countries that complement the fund’s portfolio.”
Ramdane Batouche, chairman and founder of Général Emballage, says: “Our company has grown to become the leading player in its industry over the last 10 years and is strongly positioned to capitalise on the favourable macro trends driving demand for cardboard packaging in Algeria and the region. After a successful partnership at different levels with AfricInvest we are delighted to welcome DPI as a new shareholder and believe partnering with DPI will allow us to continue our strong organic growth in Algeria and further expand into new markets in Africa. We particularly appreciate DPI’s proven experience of working with family-owned businesses and its deep understanding of the Algerian and African markets.”

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