Amethis new equity investment in Boulos Group – Nigeria

Amethis Finance is pleased to announce extending a convertible loan to Elephant Africa Holding, a holding company controlling 100% of both Bel Papyrus Ltd. and Bel Impex Ltd., the leading producers of tissue paper products in Nigeria. Alongside Amethis, EuroMena Fund III, the latest of The EuroMena Funds, a MEA based PE fund, and other co-investors participate to the investment. Upon conversion, the consortium will become a minority equity investor.

Part of the Boulos Group of Companies, the paper business was founded by Anthony and Gabriel Boulos in Lagos in 1987 and rapidly became the Nigerian leader in the production of jumbo reels and its conversion into  toilet paper, napkins, facial tissues, kitchen towels and handkerchiefs with a 35% market share of finished products today. The company is a unique industrial asset in Nigeria and West Africa thanks to its state of the art machinery with a third paper mill that started production recently. The production model is essentially based on waste paper collected locally and recycled internally to produce jumbo reels, which are then converted into finished products. The company’s vertical integration grants it a significant competitive advantage over other local and regional players. Moreover, The company has developed its own brands which are highly visible and distributed all over Nigeria thanks to a wide distribution network of traditional wholesalers as well as modern retailers. In addition, the company exports jumbo reels to converters mainly in ECOWAS countries.

Today, the company mainly serves Nigeria, Africa’s largest market, with a population of 180 million and a fast-growing middle class of consumers.

As part of its development strategy, the group intends to expand regionally while diversifying its local product range towards hygiene products, such as diapers and sanitary napkins. “Potential acquisitions and strategic partnerships are already being considered and Amethis will use its network and knowledge of the region to the group’s benefit” said Jean-Sebastien Bergasse, Investment Director on the project.

For this investment, Amethis succeeded in gathering several co-investors, including some of its Limited Partners, and The EuroMena Funds, a well-known partner to Amethis specializing in private equity investments in the Middle East and African regions.

It is worth noting that the Boulos family is bringing along external partners to the paper business for the very first time, with the ambition to institutionalize the business and accelerate its local and regional developments.

“Amethis and EuroMena are glad and proud to seal a partnership with the Boulos family and support the business’ future evolutions while contributing to the development of local consumer goods sector” highlighted Laurent Demey, Managing Partner at Amethis and Gilles de Clerck, Partner at the EuroMena Funds.

“We are pleased to welcome Amethis and Euromena as partners in our paper business. We’re confident they will contribute actively to the business governance and support both its development in Nigeria and its regional expansion”, commented the Boulos family.

Kyte Partners acted as sole financial advisor to the Boulos Family on the transaction.

The fund’s investment is fully part of Amethis’ strategy to support family businesses in consumer related sectors in their modernization and regional development on the African continent.

About Amethis Finance

Amethis Finance is an investment vehicle dedicated to Africa, with a total investment capacity of USD 530 million. Amethis Finance has been created by a team of experienced investors and bankers led by Luc Rigouzzo and Laurent Demey and by La Compagnie Benjamin de Rothschild, subsidiary of the Edmond de Rothschild Group. They have been joined by a large group of private investors combining financial institutions and family offices. Amethis Finance is a “one stop shop” which provides all long-term financial instruments (long-term debt, equity and quasi equity investment), with high standards and objectives in terms of development, social and governance criteria. Amethis Finance’s ambition is to tap into the significant potential offered by the financial institutions landscape in Sub-saharan Africa and to dedicate 40% of its activity to this industry.

About Euromena Fund

The EuroMena Funds have been operating in the Middle East and African regions since 2005. The EuroMena Fund Management Team has raised more than USD 300 million to date from prominent investors, and has successfully closed more than 20 investments and divestments in its target region. EuroMena III, its latest fund, had its first closing in October 2014 for a total consideration of USD100 million, backed by commitments of top tier institutions, High Net Worth Individuals, and family offices while targeting a final size of USD 200 million by October 2015. The EuroMena Funds’ objective is to invest in promising companies with strong potential for growth and turn them into regional and international players.

Contacts (The telephone number provided below is for the exclusive use of journalists and other media representatives.) :

❖ Amethis Finance (www.amethisfinance.com) :
Laurent Demey
Tel: +33 1 56 68 85 65
laurent.demey@amethisfinance.com

Jean Sebastien Bergasse
Tel: +33 1 56 68 85 67
jean-sebastien.bergasse@amethisfinance.com

Nadia Moukaddem
Tel: +33 1 56 68 85 72
nadia.moukaddem@amethisfinance.com