The Kenafric Group was founded in 1987 by Velji Punja Shah and his four sons. The Group has grown to emerge as a major FMCG group in East Africa, having diversified into confectionery, footwear, culinary and stationery manufacturing. This transaction has been limited to the confectionery and culinary business and the Shah family will continue to operate the footwear and stationery business separately.
Kenafric enjoys a leading position in the packaged food sector, being one of the best known local FMCG brands in East Africa. Kenafric is engaged in the manufacture, branding and distribution of confectionery, snacks, ready-to-drink juices and culinary spices products. The company is unique in the packaged food sector in East Africa, having built strong entry barriers based on: (1) a capillary distribution network, (2) strong premium brands and (3) a pan-African regional footprint. Kenafric sells around 45% of its production outside Kenya.
Kenafric has reached a critical size and now intends to expand into a regional packaged food platform, leveraging on its existing strengths of an excellent route to market to broaden its product range and basket offering. The fragmented East African market offers a unique opportunity for acquisitions and strategic partnerships. The stated aim is to be able to supply the entire range of snacking products in a kiosk through adjacencies and brand extensions. Kenafric, Amethis and Metier have been working together on a promising acquisitions pipeline.
Rold and added value of Amethis
Amethis has a long-standing relationship with the Shah Family and the transaction developed as a result of this relationship. Amethis brought Metier to the transaction, a proven leader in Southern African Private Equity well-known by Amethis.
The Shah Family is bringing along external partners to the family business for the very first time, with the ambition to institutionalize the business and accelerate its local and regional developments. The Group also intends to diversify its local product range and leverage on its critical size to consolidate the market.
Amethis is working hand-in-hand with Kenafric’s management to support the expansion strategy and notably on the acquisitions side.
The fund’s investment is fully in line with Amethis’ strategy to support family businesses in consumer related sectors in their modernization and regional development on the African continent.