The Carlyle Group’s sub-Saharan Africa team has agreed to sell its minority holding in Export Trading Group (ETG) back to the firm’s founders and management team. Carlyle originally acquired its stake as part of a reported $210 million club deal with Standard Chartered and Pembani Remgro in November 2012.
Headquartered in Dar es Salaam, Tanzania, ETG owns and manages a vertically-integrated agriculture supply chain across the African subcontinent with operations spanning procurement, processing, warehousing, transport, distribution and merchandising. It acquires, processes and distributes agricultural commodities including maize, pulses, wheat, rice, cashew nuts, soya, fertilizer, sugar, coffee and tea, helping African small holder farmers sell their produce to consumers globally. Today, the company operates 30 processing plants and 300 warehouses across 30 Africa countries, employing a workforce of more than 7,000 people.
Commenting on the transaction, Marlon Chigwende, Managing Director and Co-Head of the Carlyle Sub-Saharan Africa Fund, said, “After making our investment in 2012, we have worked alongside the management team and other investors to help ETG grow and build value, while supporting African smallholder farmers…and our time working with ETG has been valuable and rewarding.”
The deal, which has now closed, represents the first exit for Carlyle’s sub-Saharan Africa Fund. Financial terms of the transaction were not disclosed.