Private equity firm Catalyst Principal Partners has acquired regional manufacturer of Britania Biscuits, Jambo Biscuits Ltd, at undisclosed fee.
The Kenyan-based confectionery producer exports its products to regional markets including Tanzania, Ethiopia and Zambia.
This is the first investment that the Nairobi-based Private equity firm has made after raising $103 million worth of new capital from a consortium of global investors in March 2017.
The funds were raised during the initial phase of the second round of its capital raising plan putting the firm in a pole position to start making investments and close deals.
Growing faster
The firm is targeting to raise a total of $175 million of new capital by the end of this year (2017).
The firm said in a statement Monday that the biscuits manufacturing business would be handled through a newly established firm Britania Foods Ltd.
“The Britania brand has a strong heritage across Kenya with well-known products in the market. Our investment was anchored on the innovation platform consistently achieved by the brand within the biscuits category, as well as positive market fundamentals in a sector that is growing faster than gross domestic product (GDP), propelled by younger demographics and growing disposable income,” said Paul Kavuma, Chief Executive, Catalyst.
Deep heritage
Britania brand of biscuits was established in Kenya over three decades ago and has evolved into a strong confectionary player, in the industry offering a wide range of biscuits.
“With a strengthened team and balance sheet, we aim to leverage the company’s deep heritage to expand its capacity and reach, and to diversify its product range to become a leading regional player in fast moving consumer goods,” said Robert Kagundah, the newly appointed Chief Executive of Britania Foods Ltd.
Catalyst’s regional investment strategy is focused on investing in high growth mid-sized companies across Eastern Africa.
Diversified portfolio
These include consumer goods and retail, financial and business services, healthcare, industrials, manufacturing and value-add processing, technology and telecommunications.
Its first round of Capital raising programme dubbed ‘Catalyst Fund I’ raised $123million.
This amount was invested in regionally diversified portfolio of nine (9) high-growth companies.
These investments include Chai Bora (Tanzania), ChemiCotex (Tanzania), Effco Solutions (Tanzania), Zenufa Laboratories (Tanzania), Jamii Bora Bank (Kenya), Orbit Chemical Industries (Kenya), Yes Brands (Ethiopia) and Kensta Group (Kenya).
In October 2016 Catalyst exited Goodlife Pharmacy.
