Amethis acquires a minority stake in the Naivas group, the Kenyan leading retailer.
Amethis, alongside its partners DEG, MCB Equity Fund and IFC, a member of the World Bank Group, is pleased to announce its partnership with Naivas. The transaction marks the acquisition of a minority equity stake into the Naivas Group.
Naivas is the leading mass distributer in Kenya with a 60 stores’ network throughout the country. Thanks to strong fundamentals, the group plans to pursue its expansion strategy nationwide.
Established in 1990 by the Mukuha family, Naivas started as a small family business in the village of Rongai, located on the outskirts of Nakuru town in rural western Kenya. From 2001, the company expanded to Nairobi where it opened its first branch on Ronald Ngala Street. The activity of Naivas then progressively migrated to Nairobi through subsequent openings and opportunistic acquisitions to become today one of the main retailers in Kenya.
This investment, the fourth of Amethis Fund II, will support the strategy implemented by the family and the management team towards the emergence of a national leader in the retail sector. Naivas aims at continuously improving its supply chain, developing its private label segment and strengthening relationships with suppliers. The group will then be able to consolidate its position and to further expand with new openings in the country.
Amethis will be the first external investor outside the family to join the capital of the company.
“We are very excited about this partnership. As we embark on our next phase of growth, having an experienced investor with us will further strengthen the business”, said David Kimani, Managing Director of Naivas. He further added, “Amethis has a strong track record investing across Africa and in Kenya, which will add value to our operations.”
Andreas von Paleske, a Senior Advisor to Naivas, commented, “This transaction is testament to the hard work by Naivas’ management and shareholders of having put in place strong governance and controls, enabling the business to grow sustainably. This transaction will further enhance this.”
Jean-Sebastien Bergasse, Partner at Amethis, declared: “In a Kenyan retail landscape where many competitors from abroad are settling in, we are proud to support a very successful Kenyan business who understand the better the Kenyan consumer. We look forward to working jointly with the shareholders and management team to further expand the business’ operations and store network and keeping at the same time a strong Kenyan identity. »
Frank-Astère Ndyo-Butoyi, Investment Director, Amethis East Africa, added “During this time of transformation in the sector, we are honored to be joining such an iconic Kenyan brand and I am most excited about the future and new milestones we aim to achieve through actively supporting Shareholders and Management. By leveraging our new local office in Nairobi and Amethis’ experience in the African retail sector, we look forward to learning from and working with the many constituents who have built this brand and supporting them on a day to day basis in this new growth phase”
Shareholders have been advised by Sasema and Bowmans, wheresas EY, BCG, IBIS and Dentons have accompanied the investors.
About Amethis – Amethis is an investment fund manager dedicated to the African continent, with an investment capacity exceeding €725m. Amethis has been created through a partnership with the Edmond de Rothschild Group. Amethis brings growth capital to promising midcap champions in a diversity of sectors throughout the African continent. As an active shareholder, Amethis offers key support and expertise through its international network, its opportunities of external growth and its value-added governance. www.amethis.com
About Edmond de Rothschild – As a conviction-driven investment house founded upon the belief that wealth should be used to build the world of tomorrow, Edmond de Rothschild specialises in Private Banking and Asset Management and serves an international clientele of families, entrepreneurs and institutional investors. The group is also active in Corporate Finance, Private Equity, Real Estate and Fund Services. With a resolutely family-run nature, Edmond de Rothschild has the independence necessary to propose bold strategies and long-term investments, rooted in the real economy. Created in 1953, the Group now has €150 billion in assets under management, 2,700 employees and 32 locations worldwide.www.edmond-de-rothschild.com
About DEG – DEG, More than finance – For almost 60 years DEG has been a reliable partner to private-sector enterprises operating in developing and emerging-market countries. They provide their customers with tailor-made solutions, including financing, promotional programmes and advice tailored to individual needs. Their customers can thus develop successfully and sustainably, while generating local added value and creating qualified jobs. With their portfolio of around EUR 9 billion in approximately 80 countries they’re one of the world’s largest private-sector development financiers. Learn more: www.deginvest.de
About MCB – MCB Equity Fund is the private equity arm of MCB Group, the largest banking institution in Mauritius and sole shareholder of the fund. An evergreen fund with a committed capital of USD 100 million, MCB Equity Fund provides equity and quasi equity to established and fast growing businesses across Africa. The fund is managed by MCB Capital Partners, a wholly owned subsidiary of MCB Capital Markets. Their investment team focuses on maximizing returns on invested capital and developing a network of like-minded investors. They take minority stakes alongside a range of international partners, including Development Financial Institutions, family offices, private equity firms and corporates, and work with them in identifying attractive investment opportunities and creating value. For more information, please see www.mcbcm.m u and www.mcbgroup.com
About IFC – IFC, a sister organization of the World Bank and member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. They work with more than 2,000 businesses worldwide, using their capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, they delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.