Adenia Partners sells leading dairy company in Madagascar

26 Apr 2019

Adenia Partners, a private equity fund manager focused on control investments in Sub-Saharan Africa, has exited its investment in Socolait, the leading dairy producer and distributor in Madagascar. Adenia Partners, through Adenia Capital (II) and Adenia Capital (III), originally invested in Socolait in March 2012 in partnership with the company’s Managing Director, Philippe Penouty. During the life of this investment, Adenia transformed the company’s business model from a simple sweetened condensed milk production plant, into the country leader in fresh dairy products, despite a highly competitive environment.

This transformation was realized through (i) the development of a fresh milk collection network of ~2,600 small-scale farmers, (ii) large investments to refurbish the factory and to upgrade the processes that are now ISO 22000 and HACCP certified, (iii) the rebalancing of the products range towards yoghurts, (iv) the setup of a robust distribution network in the country’s major cities, and (v) a strong marketing campaign that positioned the company as a flagship food brand in the country. On the back of this 5-fold strategy, Socolait experienced a 20% turnover CAGR in Euros over the past 4 years.

With the Socolait exit, Adenia Capital (II) has achieved an average gross IRR of 27%, which ranks in the top quartile of African private equity funds performance.

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