Mediterrania Capital Partners, the regional Private Equity firm focusing in growth investments for SMEs in North Africa and Sub-Saharan countries, announces a full exit of Cepro ("Cellulose Processing"), a manufacturer and distributor of baby diapers and feminine sanitary pads in Algeria, selling its stake to The Abraaj Group.
In early 2009, Mediterrania Capital Partners acquired a significant minority stake of Cepro through its first fund for North Africa, Fons Mediterrania Capital (MC I) which closed at €63 million in June 2008.
During Mediterrania Capital Partners’ holding period, Cepro has grown its annual revenue by 580% to €58 million, as of December 2015, from €10 million recorded in 2009. The company’s annual sales of baby diapers increased by 400% during the same period – to 600 million diapers sold in 2015.
Earnings before interest, taxes, depreciation, and amortization (Ebitda) had a compound annual growth rate of over 50% between 2009 and 2015.
Additionally, during the period, Cepro tripled its factory size from 10,000 square meters to 30,000 square meters, and has plans to expand its existing facilities even further in the near future.
"We are extremely pleased with the evolution of the company during the time of our partnership." said Mr. Albert Alsina, CEO and Managing Partner of Mediterrania Capital Partners. "The sale of our stake to The Abraaj Group supports Cepro’s future strategy in terms of product development and geographic expansion".
Created in 2002, Cepro started diapers production in 2005, and feminine sanitary pads in 2006. The company has six productions lines and employees over 300 people. Djamel Mehri is founder and chairman of the board at Cepro.
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