Actis, a leading growth markets investor, has announced the sale of its remaining 7.5% stake in Edita Food Industries (Edita) to 42 blue-chip international investors from the USA, UK, Germany, South Africa, and the UAE through an accelerated book build on the Egyptian Stock Exchange. Actis originally became a 30% shareholder in 2013, and with this final sale of 7.5% has now fully exited.
Edita was founded in 1996 and is the largest, independent, branded snack food business in North Africa. The company produces croissants and cakes, as well as rusks, wafers, and candies. It is the local leader in Egypt’s snack food sector with a c. 14% market share. The company has its own distribution fleet of 577 vehicles catering to over 67,000 points of sale across Egypt through its 21 distribution centres, The company also exports to 14 countries in the MENA region.
Before Actis’ investment, in 2013, Edita generated c. 50% of its revenues from production under license of Hostess Brands’ products Twinkies, Hohos, and Tiger Tail. Edita subsequently acquired the regional rights to these brands and today 100% of its revenues are from owned brands.
Actis invested in Edita during a period of considerable geopolitical and economic uncertainty in Egypt. Actis had the sector experience and the on the ground insight to back Edita’s quality and market position, which would enable it to continue its growth path despite a challenging economic backdrop. Actis shared the management’s vision that the business’ strength would enable it to achieve resilient growth underpinned by the continuing demand for small ticket consumption.
Since Actis’ investment, the business has launched its new headquarters and logistics hub, almost doubled production capacity with major investments into two new factories, and upgraded its ERP system. In addition, the management have codified corporate governance standards to international levels.
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