Development Partners International (DPI), one of the leading African private equity specialists with US$1.1bn under management, has acquired through its ADP II fund a stake in Général Emballage, the leading packaging business in Algeria, which specialises in the manufacturing and processing of corrugated cardboard.
ADP II closed in March 2015, at US$725mn, significantly above its target and is DPI’s second successfully closed fund.
Under the agreement, a consortium comprising of ADP II and DEG- Deutsche Investitions- und Entwicklungsgesellschaft mbH has acquired a 49% stake in Général Emballage from existing shareholders, AfricInvest and the original founders the Batouche family for a total amount of approximately US$55mn.
Général Emballage is Algeria’s leading cardboard manufacturer and processor and has a well-diversified and blue-chip client base, with more than 1,000 clients in various sectors, ranging from international businesses such as Henkel, Coca Cola and Heineken to local businesses active across the food processing, pharmaceutical, cosmetics, and household appliances and electronics sectors.
Général Emballage has experienced significant growth over the last 10 years under the successful leadership of its Chairman and Founder Ramdane Batouche and now comprises three world-class manufacturing sites and 1,150 people with a market share of over 40%. This growth has been driven by an attractive and growing packaging market in Algeria, the Company’s high quality product portfolio, strong customer service, and successful addition of incremental capacity. DPI believes that the increasing consumption of consumer goods by Algeria’s growing middle class and the shift towards more local production across consumer industries will drive continued expansion of the sector in the coming years and that Général Emballage is well positioned to capture this growth.
DPI partner Sofiane Lahmar said: “We see a tremendous growth opportunity for Général Emballage not only in Algeria but also through expansion in African and Mediterranean markets. The business is set to continue its strong track record of growth and profitability and consolidate its position as Algeria’s leading player in the corrugated cardboard packaging sector. We are very pleased to partner Founder Ramdane Batouche and his high-quality management team and to support the business in its future growth story in Algeria and Africa.”
Runa Alam, CEO and co-founder of DPI, commented: “DPI is committed to making investments in Algeria, having previously invested in Biopharm, the leading local pharmaceutical company in Algeria. The investment in Général Emballage marks our first investment in Algeria from our ADP II fund and underpins our truly pan-African approach to investing into industries and markets that benefit from the growing middle class. The transaction adds to our geographical and industry diversification for the ADP II portfolio, concentrating on finding quality assets and sponsors in line with our investment strategy in countries that complement the Fund’s portfolio.”
Mr Ramdane Batouche, Chairman and Founder of Général Emballage commented: “Our company has grown to become the leading player in its industry over the last 10 years and is strongly positioned to capitalise on the favourable macro trends driving demand for cardboard packaging in Algeria and the region. After a successful partnership at different levels with AfricInvest we are delighted to welcome DPI as a new shareholder and believe partnering with DPI will allow us to continue our strong organic growth in Algeria and further expand into new markets in Africa. We particularly appreciate DPI’s proven experience of working with family-owned businesses and its deep understanding of the Algerian and African markets.”
Notes to editors:
Development Partners International LLP (DPI) is a US$1.1bn Africa-focused private equity firm with offices in London and Lagos that invests in companies benefiting from the fast-growing emerging middle class in Africa.
Founded in 2007, DPI’s investment process combines rigorous analysis with comprehensive due diligence. The firm seeks out compelling investment opportunities and aims to obtain exclusive terms, rational pricing and strong influence. The investment philosophy places great importance on working closely with the funds’ portfolio companies to create value while looking for attractive exit opportunities throughout the lifetime of the funds’ investment. DPI invests in profitable or cash-flow positive companies which are growing either organically or through acquisitions, or partnering with established corporations expanding into new regions in Africa. The companies’ management must be experienced, and committed to transparency, with a clear corporate strategy designed to create value for shareholders.
DPI’s team has had extensive hands-on private equity and investment experience across Africa since 1990. DPI currently advises two pan-African private equity funds, African Development Partners I (ADP I) and African Development Partners II (ADP II).
About ADP II
The second oversubscribed DPI fund closed in March 2015, at ~US$725mn, beating its US$500mn target.
The ADP II investor-base includes corporate and public pension funds, endowments and foundations, funds of funds, family offices and development finance institutions from across the US, Europe, Middle East and Africa with significant interest from US investors, which currently make up just over 40% of its limited partner base.
ADP II is pursuing a broadly diversified strategy across industries that benefit from Africa’s growing middle class including the financial services, healthcare, education, construction, logistics, telecoms and consumer goods sectors in line with the existing portfolio of companies operating in over 20 African countries across DPI’s two funds.
Some of ADP II’s existing portfolio companies include:
- Université Privée de Marrakech, a leading private university
- RTT, Africa’s largest privately-owned parcel distribution company
- HomeChoice, a home-shopping and credit retail company
- Eaton Towers, a Telecom Tower company which is a portfolio company of ADP I
- B.TECH, the leading Egyptian household appliance and consumer electronics retailer
DEG is a reliable partner for private companies investing in developing and emerging-market countries. For more than 50 years, we have been promoting sustainable development that creates jobs, better living conditions and new prospects.
We are committed to the long-term success of our customers: Therefore we do not only provide long-term capital, but also individual advice and support. With a portfolio of around EUR8bn in more than 80 countries, we are one of Europe’s largest development finance institutions for the private sector.
More information: www.deginvest.de
Mobile: +44(0) 7825427514
Mobile: +44(0) 7983612359« Back to Member News