In its second investment in Zimbabwe in the past 12 months, Spear Capital has acquired a 27% stake in Dendairy in a combined debt/equity deal valued at $6 million. The company is now Zimbabwe’s second largest dairy producer, and has recently expanded into the neighboring Mozambican and Zambian markets. The investment will help the firm capitalize on the expanding demand for dairy products in a region with an improving economic and political environment.
Founded in 2004, the company has expanded rapidly, growing its revenues more than 30% a year over the past six years, with each of its product lines being ranked either first or second in its category within 18 months of launch. It sells Maas, UHT milk, UHT flavored milk, Yoghurts, Ice Cream and Fruit Juices.
Spear Capital is a Scandinavian-backed private equity investment company that targets investments in businesses that are well-positioned to benefit from the growth in the sub-Sahara, with a particular focus on the FMCG, Manufacturing and Processing, Financial Services and Technology, Media and Telecoms sectors.
Spear Capital’s stake in Dendairy could grow to 30% should certain performance measures be met.