Danone, Abraaj join to acquire Fan Milk
Accra/Paris, October 24, 2013
Danone, a food products multinational company, has signed a deal to join with the Abraaj Group, a leading investor operating in growth markets, in the acquisition of Fan Milk International.
Fan Milk is a leading manufacturer and distributor of frozen dairy products and juices in West Africa established over 50 years ago, with sales of around €120 million ($165.3 million) in 2012. Its distribution network spans markets of Ghana, Nigeria, Togo, Burkina Faso, Benin and Ivory Coast.
Arif Naqvi, founder and group chief executive of The Abraaj Group, said: “The acquisition of Fan Milk represents the largest FMCG private equity transaction in Sub-Saharan Africa, outside South Africa. We look forward to partnering with Danone in order to accelerate the growth and penetration of Fan Milk’s portfolio of leading consumer food brands across West Africa.”
Emmanuel Faber, Danone’s chief operating officer, said: “This transaction represents a major step in Danone’s expansion in Africa. Fan Milk is a company with a unique business model driven by a neighborhood sales and distribution platform working through 31,000 independent vendors. Danone is already present in North and South Africa, and we will now be able to develop the dairy product market in West Africa.”
The Abraaj Group had previously announced its agreement to acquire 100 per cent of Fan Milk through one of its funds in June. However, Abraaj and Danone will now respectively acquire a 51 per cent and 49 per cent stake in Fan Milk International.
Under the agreement, Danone will in the coming years gradually acquire a controlling stake in the business. The partners expect to complete the transaction by the end of this year. - TradeArabia News Service