French food producer Danone, is joining Dubai-based private equity firm Abraaj Group in acquiring Ghana’s Fan Milk International.
Abraaj, which had previously agreed to buy 100% of the company, will own a 51% stake with Danone holding the remaining 49% interest.
Under the agreement, Danone will gradually acquire a controlling stake in Fan Milk.
The company makes and distributes frozen dairy products and juices in West Africa with a presence in Ghana, Nigeria, Togo, Burkina Faso, Benin and Ivory Coast. Its target markets have projected GDP growth rates of as high as 8.3%.
Fan Milk posted sales of around €120 million in 2012.
“This transaction represents a major step in Danone’s expansion in Africa,” said Emmanuel Faber, Danone co-chief operating officer to the Financial Times. “Fan Milk is a company with a unique business model driven by a neighbourhood sales and distribution platform working through 31,000 independent vendors.”
Abraaj CEO Arif Naqvi said that the “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.”
The firm’s other recent deals include an investment in African Industrial Services Group, a Cote d’Ivoire-headquartered engineering services and component manufacturing company.
