Amethis and partners exit Kenyan supermarket chain
Amethis – alongside its partners: DEG, MCB Private Equity and IFC – have reached an agreement to sell their stake in Naivas International (Mauritius), which owns 100% of the shares of Naivas Limited, a leading supermarket chain in Kenya. The deal which sees the Mukuha family continue holding majority control, welcomes IBL Group, a Mauritius conglomerate as the lead investor of a consortium of new equity partners.
IBL Group’s partners in the consortium are Proparco and DEG. This marks IBL Group’s first investment as part of its expansion strategy in East Africa. The agreement is still subject to regulatory approvals.
Naivas was Amethis Fund II’s fourth investment and now first exit. In the course of the investment period, Naivas has been able to consolidate its position and expand with its total number outlets growing from around 60 to more than 84 stores today, in the process adding five new cities to its footprint in Kenya.
On top of the geographical expansion, Amethis also supported the development of a strong middle management layer in the group, with numerous hires to better control growth and risk across different segments: IT, e-commerce, category management, environmental and social functions, etc. An ambitious IT upgrade programme has been subsequently rolled out to equip management with state-of-the-art analytical tools. Naivas has also continued its ambitious investment in prices and promotions to maintain an affordable offering and stay true to its historical motto “Naivas saves you money”. All of the above resulting in the group being now even better positioned to further expand with new openings already planned in the country.
David Kimani, managing director of Naivas said, “We are very happy to welcome our new partner to Naivas. The backing of a leading international conglomerate is a testimony to Naivas’ success and unique profile in the market. We have ambitious plans for the company and look forward to combining our strengths to create value for all our stakeholders.” He further added, “We really enjoyed the quality of the partnership with Amethis and are looking forward to collaborating further in the future.”
Frank-Astère Ndiyo Butoyi, investment director at Amethis declared, “During these times of transformation in the sector, we have been honored to partner with such an iconic Kenyan brand and I am very excited about the current growth momentum and future prospects for the group. By leveraging our local office in Nairobi and Amethis’ experience in the African retail sector, we have been able to support the talented management team all-the-way through the recent expansion phase. We are convinced that this new partnership will unlock additional value and lay the foundations of the group’s very successful future.”
Shareholders have been advised by EY, Bowmans and Rothschild, whereas PwC, Benoit Chambers, Kaplan & Stratton and Ibis have accompanied the investors.