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. Spear Capital invests in plastics manufacturer
International private equity firm Spear Capital has announced its investment in Arkay Plastics Zambia Ltd and Arkay Mozambique Lda, collectively known as Arkay Plastics. The deal will equip Arkay Plastics with the means of becoming a leading player with market dominance in the manufacturing sector. This latest transaction by Spear Capital demonstrates growing confidence in developing FMCG companies in southern Africa, despite the persistence of the Covid-19-related global economic downturn.
Arkay Plastics is regarded as the leading brand name for plastic houseware, furniture, industrial products and packaging in Zambia and Mozambique, with distinct segments in retail, exports, packaging, and crates. The manufacturer also carries approved supplier status with international organisations such as Carlsberg, Castel, Coca-Cola, Heineken, Plascon and AB InBev. Spear’s drive to increase Arkay Plastics’ production capacity will enable the company to fulfil larger orders while growing the higher-margin crate business. In addition, Arkay will prioritise the company’s sustainable manufacturing growth through environmental impact and waste reduction.
2. Alta Semper Capital increases stake in consumer healthcare company
Alta Semper Capital, a consumer and healthcare focused private equity investor operating across several growth markets, announced a further investment in Macro Holding, a consumer healthcare company in Egypt operating in several high-growth sub-segments of the cosmeceuticals market.
As part of this transaction, the company is partnering with Alta Semper and the Alta Semper CoInvestor Consortium, consisting of emerging markets private equity specialist IDI Emerging Markets, African private markets investor Mbuyu Capital Partners, and London-based Frontier markets specialist Kingsway Capital to expand the product portfolio, grow into complementary product lines, and expand geographically.
3. Inside Capital merges Zambian brick manufacturer with Zimbabwean entity
Inside Capital Partners has announced the merger of its portfolio company Kalulushi Clay Bricks (KCB) with Beta Holdings Limited to create a regional building materials champion.
KCB is Zambia’s oldest and largest clay brick manufacturing facility. Initially a minority investor, Inside Capital Partners took full control of KCB in 2018, transforming the company into a well-structured business positioned for growth. KCB services the construction market in Zambia and the DRC region.
Beta is Zimbabwe’s largest building materials supplier with operations in clay bricks, concrete products and aggregates.
4. LP commits up to $50m for Lorax Capital Partners fund
The European Bank for Reconstruction and Development (EBRD) will invest up to $50 million in Lorax Capital Partners’ LCP Fund II.
This investment marks the EBRD’s second investment into an Egypt-focused private equity fund, with the first being Ezdehar Egypt Mid-Cap Fund in 2016.
With the support of the EBRD, the fund held a first closing of $142 million in September 2020, launching its first traditional private equity fund. The fund is targeting total commitments of $250 million.
5. CDC and Nigeria Sovereign Investment Authority intend to co-invest
CDC Group, the UK’s publicly owned impact investor, has signed a memorandum of understanding with the Nigeria Sovereign Investment Authority (NSIA). The strategic investment partnership is designed to facilitate long-term inclusive growth and encourage private capital to scale up their participation in high-impact sectors of the Nigerian economy.
The agreement includes information sharing on prospective projects in Nigeria and Africa at large with the ambition to co-invest in sectors such as healthcare, agriculture, infrastructure and climate-resilience. The partnership will foster collaboration on areas of knowledge sharing with an explicit objective of creating jobs and generating impact in Nigeria and across Africa.
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