International law firm Freshfields Bruckhaus Deringer has advised The Abraaj Group on its agreement to acquire a 100% stake in Fan Milk International (“FMI”), West Africa’s market leading manufacturer and distributor of frozen dairy products and juices.
The acquisition of what is an iconic West African food consumer brand represents the largest ever African FMCG private equity transaction in Sub-Saharan Africa, outside RSA.
The Abraaj Group is one of the largest and most active private equity investors in Africa, having invested US$2.2 billion in sixty-nine partner companies, making it one of the most active, long term investors on the continent.
Established over 50 years ago, FMI possesses an impressive track-record of organic growth in West Africa where it has become the undisputed market leader in frozen dairy products. FMI currently operates through subsidiaries in the rapidly growing markets of Ghana, Nigeria, Togo, Ivory Coast, Benin and Burkina Faso. The company has successfully built and controls a unique and fully integrated regional manufacturing and distribution cold chain network, as well as a broad portfolio of convenience food and beverage brands that reaches over 31,000 end-sales points. FMI, through its subsidiaries, currently sells over 1.8 million products on a daily basis across West Africa.
The Freshfields team advising on the transaction was led by Freshfields’ MENA head Pervez Akhtar. Commenting on the deal, Pervez said: ‘This is a landmark deal for the Abraaj Group and African Private Equity and is part of the increased trend we are seeing of our private equity clients increasing their investments in Africa, particularly in the FMCG sector. FMI’s range of frozen dairy and beverage products supply some of the world’s fastest growing consumer, youth and urban markets and the investment the deal will bring to the company will enable it to benefit from the rise of a burgeoning middle and consumer class in Africa’.
The transaction is expected to close by the end of November this year.
