DOB Equity, as advisors and managers of the Dutch Oak Tree Foundation’s investments, have sold the group’s shares in the Joseph Initiative. The deal comes about as part of Agilis Partners’ acquisition of the shares held by multiple minority interests to own a majority stake in the Ugandan grain management and merchandising company. Financial terms of the transaction were not disclosed.
Dutch Oak Tree Foundation, which remains a lender to the company, first backed the Joseph Initiative in 2014, taking a minority position in the firm and helping to finance its early growth. Since then, the company has successfully built a network of grain collection, primary processing and storage infrastructure across Western Uganda. As the new majority stakeholder, Agilis Partners plans to implement a new capital structure for the Joseph Initiative and boost the company’s growth trajectory, profitability and future financing opportunities by increasing collaboration with the East African agribusiness’s other investments.
“We are proud that our early-stage investment and strategic support helped Agilis to build the JI into the enterprise and impact engine it is today,” Brigit van Dijk – van de Reijt, CEO of DOB Equity was quoted as saying in the statement announcing the sale. “With this management buy-out, we are able to prove that financial and social returns can go hand in hand. The JI is working with farmers across Uganda to support them to produce high quality grains and pulses whilst providing access to market. Apart from the direct social impact to the farmers of Uganda, the JI contributes to enhanced food security for East Africa.”
McFarlanes acted as DOB Equity’s legal advisors for the deal. McDermott Will & Emery fulfilled the same role for Agilis Partners.