S2 Africa, a retail-focused buyout vehicle established by London-based private equity fund Satya Capital and Portugal’s largest supermarket retailer, Sonae Distribuição, is reportedly acquiring the Extra supermarket chain from Africom Delta Corporation or ADC, a joint venture between Mozambican food retailers Africom Limitada and Delta Trading. The report, by Zitamar News, stated that the deal has been announced internally to ADC’s staff, ahead of a handover to S2 Africa late last week. The terms of the transaction were not disclosed.
Extra was previously owned by Pick n Pay, a South African retailer, who struggled to turn a profit with the chain before selling it to ADC in 2013. In May 2015, a report from the French Embassy in Maputo stated that Extra, which targets lower income consumers, had 25 stores in the country, including 15 in the capital Maputo, as well as selling its own brand products through other outlets.
Satya Capital’s strategy is to target growth and expansion capital investments in the $20 million to $150 million range. The private equity investor has made a number of significant strategic moves in the past few months, most notably a partnership with TPG, the $70 billion investment company, to invest up to $1 billion in Africa.