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AfricInvest exits Générale Embellage in $55mln deal

AfricInvest, the pan-African midcap private equity firm, is exiting its stake in Générale Emballage in a $55 million secondary deal to a consortium made up of fellow private equity investor Development Partners International and German development finance institution, DEG. Under agreement, the consortium is acquiring a 49% stake from AfricInvest and the Batouche family, the cardboard manufacturer’s founders.

AfricInvest first backed Générale Embellage in 2009, since when the company has generated significant growth, expanding its turnover and EBITDA five and eight times respectively. With a market share in excess of 40, the firm is one of Algeria’s larger cardboard manufacturers and processors. It counts a number of leading multinationals such as Henkel, Coca Cola and Heineken among its more than 1,000 clients as well as local firms in the food processing, pharmaceutical, cosmetics, electronics and household appliance sectors.

Development Partners International is making the investment through its ADP II fund, a $725 million fund which closed in March 2015. The investor sees additional opportunity for Générale Emballage from the projected increase in consumption by Algeria’s growing middle class combined with the shift toward more local production across consumer industries.

“We see a tremendous growth opportunity for Générale Emballage not only in Algeria but also through expansion in African and Mediterranean markets,” said Sofiane Lahmar, a Partner at DPI. “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.”

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