The 5 most popular stories on Africa Private Equity News this week
Here are summaries of the five most widely read stories this week on Africa Private Equity News.
1. Actis sells stake in South African furniture company
The Foschini Group has entered into a sale and purchase agreement to acquire the entire issued share capital of Tapestry Home Brands from Westbrooke Investments, funds managed by Actis, as well as the current and previous management of Tapestry.
Tapestry is a prominent direct-to-consumer, vertically integrated designer, manufacturer and omnichannel cash retailer of home furnishings serving consumers’ living and sleeping needs, targeting the middle to upper LSM markets. The Tapestry brands include popular made-to-order furniture retailer, Coricraft; South Africa’s renowned branded bedding retailer Dial-a-bed; home textile retailer, Volpes; and value bedding retailer, The Bed Store.
2. East Africa: A.P. Moller Capital in LPG deal
Fund management company A.P. Moller Capital has completed the acquisition of a 29% stake in KEG Holdings Limited. KEG operates across the LPG value chain in East Africa and owns the largest LPG import marine and storage terminal in the region.
Today, 80% of Kenyan households cook using solid fuels, such as wood and charcoal, which contribute to deforestation and cause severe indoor air pollution with adverse health consequences. This investment supports the transition away from the use of these solid fuels and towards the use of LPG, a cleaner method of cooking.
3. Morocco: DPI and CDC in pharma deal
Development Partners International (DPI), an investment firm focused on Africa with $2.8 billion in assets under management including co-investments, and CDC Group, the UK’s development finance institution, announced that an agreement has been signed for KELIX Bio to acquire Pharmaceutical Institute (PHI), a Moroccan-headquartered producer and distributor of generic and therapeutic pharmaceuticals. The acquisition, which will be financed through up to a $200 million second round of funding into KELIX Bio led by DPI and CDC, is subject to regulatory approvals in Morocco. It is expected to close in the first quarter of 2022.
KELIX Bio is a specialty generic business focused on emerging markets. Its current investors include DPI, CDC and the European Bank for Reconstruction and Development (EBRD).
4. Aruwa Capital invests in off-grid refrigeration company
Aruwa Capital Management, an early-stage growth equity and gender lens fund investing in Nigeria and Ghana announced an investment into Koolboks, a technology-enabled renewable energy refrigeration company that provides cost-effective cooling to business owners, particularly women, in off-grid areas in Nigeria and globally. The company makes eco-friendly refrigeration affordable and accessible to everyone.
Established in 2018, the company’s founders created a product to provide affordable and energy efficient refrigerators to customers. This solution is critical for the African continent where refrigeration penetration rate is currently only at 17% and 770 million people are without access to electricity. In Africa, there are significant amounts of spoilage, particularly in the food and pharmaceutical industries, due to the grid instability and lack of power. Koolboks has solved this critical problem by combining the power of two natural forces, the sun and water, creating a refrigerator that can store energy for up to four days in the absence of power from the grid or generators. Through its proprietary ice-battery design and technology, cooling is retained in the absence of power, helping to reduce wastage of food and vaccines in under-served off-grid regions, helping SMEs in off grid areas to maximise revenue and profits. The company’s products are eco-friendly and protect the environment by using natural rather than synthetic refrigerants that are harmful to the environment.
5. Creadev leads investment in Ugandan telemedicine company
Uganda-based integrated telemedicine player Rocket Health has closed a $5 million series A round led by Creadev, an evergreen investment structure backed by the Mulliez, a French family of entrepreneurs, with participation from existing early-stage African investors, Grenfell Holdings and LoftyInc Capital Management. This investment will allow Rocket Health to accelerate its technology roadmap and geographical expansion to make healthcare more convenient, accessible and delivered to patients wherever they are.
Creadev Africa is part of Creadev, a global long-term investment firm controlled by the Mulliez family, founders of one of the largest business-to-consumer retail platforms in the world (Auchan, Decathlon, Leroy Merlin). Since 2002, Creadev has invested over $2 billion from venture to growth equity and buyout. With offices in Paris, Nairobi, New York and Shanghai, Creadev invests in companies well positioned to scale and become worldwide champions in their respective sectors.
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