Actis has sold its remaining stake in Edita Foods to a large group of investors from the USA, UK, Germany, South Africa and the United Arab Emirates. The sale of the 7.5% stake was executed via an accelerated book build on the Egyptian Stock Exchange, completing a full exit for the pan-emerging markets private equity firm. Financial terms of the deal were not disclosed.
Actis first backed the North African branded snack food business in 2013, acquiring a 30% stake in a $102 million deal. In early 2015, the private equity firm partially exited its holding in Edita Foods, selling 15% of its stake in an oversubscribed IPO. At the time, the IPO price of EGP 18.5 million gave Edita Foods a market capitalization of EGP 6.7 billion or approximately $890 million.
Launched in 1996, Edita Foods has grown to become the North African region’s largest independent branded snack food business. The company manufactures and distributes a range of branded baked snack products including packaged cakes, croissants, rusks, wafers and confectionary. Among the brands in its portfolio are several household names in North Africa, including Molto, Todo, HoHos, Twinkies, Bake Rolz, Freska and MiMix.
During Actis’ period of ownership, Edita Foods has opened its new headquarters and logistics hub and doubled its production capacity through investment in two new factories. It has about a 14% share of Egypt’s snack food market, selling its products through 67,000, which are supplied via 21 distribution centers in the country.
Before Actis invested in the firm, 50% of its revenues were generated from the production under license of Twinkies, Hohos and Tiger tail, all products belonging to Hostess Brands. Since then, Edita Foods acquired the regional rights to these brands, ensuring that 100% of revenues are earned from own brands today.
CI Capital and EFG Hermes provided Actis with financial advisory services on the sale.