PE firm Ezdehar acquires stake in Egyptian retail chain

Ezdehar Management, through the Ezdehar Mid-Cap Fund II, has acquired a controlling stake in retail supermarket chain Zahran Market for an undisclosed amount. Compass Capital acted as the exclusive sell-side advisor to the selling shareholders of Zahran. Ezdehar will own 60% of Zahran Market after the closing of the transaction.

Zahran Market which was founded by Eng. Mamdouh Zahran as a family business in 1987 in Alexandria, was one of the first movers to the North Coast in 1997 and has now grown to operate 16 branches in seven governorates across Egypt. In 2016, the second-generation family members, Karim Zahran and Omar Zahran, kicked off a transformation programme and embarked on an expansion and institutionalisation plan. This included the opening of eight new branches with a focus on the Delta region, rebranding and renovation of legacy branches, and the set-up of strategic partnerships, among other initiatives. The company has an ambitious expansion plan to increase its footprint across the regions its already operating in, in addition to exploring other regions in Egypt.

Karim Zahran, the chief executive officer of Zahran Market said, “Today marks a new milestone in the Zahran Market journey. We are excited to be joining forces with Ezdehar to continue our vision in growing the Zahran Market brand across Egypt. This partnership comes as an affirmation of the confidence in the company’s performance in the past period, along with our shared vision of the company’s growth prospects.”

Compass Capital played the role of the exclusive sell-side advisor to the shareholders of Zahran Market, while Matouk Bassiouny and Hennawy provided legal counsel. ADSERO – Ragy Soliman and Partners provided legal advice to Ezdehar, while PwC was financial advisor.

Get the most from the Africa Private Equity News app by creating a free membership account. Go to the app home screen, tap the round orange icon in the top-right of your screen and follow the prompts.