Danone, the French dairy conglomerate and leading emerging market private equity firm The Abraaj Group are investing an additional $25 million in Fan Milk, the West African dairy producer which they both originally backed in 2013. Additional terms of the deal were not disclosed.
The fresh funds will be used to boost the production capacity of the firm’s Ghanaian operations by adding three new production lines to its factory in Accra. As well as boosting the firm’s ability to meet the demand for yoghurt and other dairy products which is expanding in West Africa’s second largest economy, the new production facilities will allow Fan Milk’s Ghana business to launch FanMaxx a new vitamin-enriched yoghurt drink.
Originally launched in Ghana in the early 1960s, Fan Milk as expanded into several other West African countries including Benin, Burkhina Faso, Cote d’Ivoire, Nigeria and Togo. Danone expanded its investment to take a majority stake in the company in 2016.