Consumer goods conglomerate Kenafric’s US$100 million confectionery stake is up for sale by two private equity firms with the transaction spearheaded by Nedbank Group, Bloomberg reported on Friday.
- •The two firms – French Amethis Finance and South Africa’s Metier Private Equity Ltd – jointly acquired a 40% stake in Kenafric’s confectionery and culinary business in February 2017.
- •The Kenyan candy maker was founded by the Shah family in 1987 with interests in confectionery, footwear, culinary and stationery manufacture.
- •According to Bloomberg, the Shah Family might also consider scaling down its holding, enlisting Kenya’s I&M as the transaction advisor
Kenafric has footing across East Africa, producing over 40 million pieces of gum monthly with a robust retail network.
The company had an annual turnover of about KSh 10 billion a decade ago, and sells about 45 per cent of its products outside Kenya. Itwas looking to enter Ethiopia, South Africa and West Africa either through distributorship, buyouts or setting up a plant.
In August 2022, KenAfric and India’s Britannia Industries collaborated to acquire troubled Kenyan biscuit maker Britannia in a deal valued at KSh 2.4 billion.
The planned sale comes at the expected start of increased activity in private equity fund exits.
“In light of an expected uptick in the growth outlook in the next 12 to 24 months, exit activity is expected to pick up across all regions, with secondary sales to PE and sales to strategic investors expected to dominate exit routes,” read the 2024 Deloitte Africa Private Equity Confidence Survey.
According to Bloomberg, Kenafric and Nedbank did not comment on the matter while Metier said it is examining its position, which might result in it considering an exit.
