Two Africa-focused private equity fund managers, Amethis Finance and Metier, are teaming up to take a significant minority stake in Kenafric Industries, a major FMCG group based in Kenya. The transaction is limited to Kenafric’s confectionery and culinary business, with the founding Shah family continuing to operate the Group’s footwear and stationery businesses separately. Financial terms of the deal were not disclosed.
The deal is being transacted by Amethis’s $530 million Africa Fund and Metier’s Capital Growth Fund II, which is currently still being raised and has already landed more than R2.5 billion in commitments. Jean-Sébastien Bergasse led the deal for Amethis, while Paul Botha and Grant Howarth led for Metier. As part of the deal, both Bergasse and Botha join Kenafric’s Board of Directors.
The capital will be used to support Kenafric’s strategy to expand to become a regional packaged food platform, and has identified the fragmented market in East Africa as being ripe with potential for acquisitions and strategic partnerships. Working with Amethis and Metier, the firm has reportedly already identified a pipeline of promising acquisition targets.
The deal is the first time the Shah family have admitted outside investment in the firm, and comes as a result of Amethis Finance’s longstanding relationship with them. For Metier, the deal marks another first. With a notable track record of investment in southern Africa, the Kenafric deal is the South Africa private equity firm’s first foray into Kenya.
Anjarwalla & Khanna represented the investors on the deal, whilst Bellhouse Capital, Pratul Shah and Bowmans acted for Kenafric Group on the transaction.