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Sikand... focus on FMCG market.

Abraaj buys into South Africa consumer goods firm

JOHANNESBURG, October 8, 2014

UAE-based Abraaj Group, a leading investor operating in global growth markets, has acquired a majority stake in one of the largest unlisted food and personal care manufacturers in South Africa.

Abraaj completed the buyout of Liberty Star Consumer Holdings from its existing shareholders including Metier, Old Mutual Private Equity, Development Partners International and Lereko.

Libstar and its subsidiary companies manufacture a broad range of quality private label and own-branded products for the rapidly growing South African food, fast-casual dining, household and personal care markets.

Its range of products cover cheeses, sauces and condiments, packaging supplies, baking aids, herbs and spices, beef and chicken products, pasta, imported European deli products, confectionery snacks, and detergents and washing powders. Some of Libstar’s most prominent customers include McDonald’s South Africa, Woolworths, Shoprite, Pick n Pay, Spar and Tiger Brands.

Libstar operates nationally through 23 business units located in five of South Africa’s nine provinces and employs about 4,200 people with nationwide manufacturing, supply and distribution capabilities.

The acquisition of Libstar represents an attractive investment opportunity for Abraaj given the large, non-cyclical markets and industries that Libstar targets. The $56 billion South African grocery retail market and $14 billion food services market are estimated to grow at 7 per cent and 9.5 per cent per annum respectively to 2018.

Furthermore, its private label manufacturing, supply and distribution business has strong organic growth potential, a statement said.

Davinder Sikand, partner and head of Sub-Saharan Africa for The Abraaj Group, said: “Metier, along with the Libstar management team and employees, has built an impressive market position as one of the leading manufacturers and providers of high-quality products and services to the African foods service and retail industry.”

“We look forward to adding our deep experience in helping accelerate the growth of our numerous FMCG and food businesses, not only across Africa but from our other growth markets as well,” he added.

Sandeep Khanna, managing director at The Abraaj Group, added: “In partnership with Libstar’s management team who have reinvested substantially, we believe we can help transform the company to become a truly pan-African leader in the food and retail services market.

“The market opportunity for food and other consumer staples in Africa promises huge potential for growth, driven by rapidly changing trends in consumer tastes and demand, as well as ongoing developments within the FMCG industry itself, such as the increased use of private labels.” – TradeArabia News Service




Tags: South Africa | Abraaj |

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