Amethis, Kibo and Proparco in Merec Industries deal (Mozambique)

By ANNA LYUDVIG | Africa Global Funds August 3, 2018

Amethis Fund II, alongside Kibo Fund II and Proparco have acquired a minority equity stake in Merec Industries, a fully integrated miller and packaged food manufacturer in Mozambique.

Created in 2001, Merec has a promising strategy to reinforce its dominant position in Mozambique and expand in the region.

After a successful diversification from wheat and maize milling to a diversified food FMCG player (pasta, biscuit and animal feed), this family owned group has developed a strong footprint in the SADC region.

This investment, the second for Amethis’ new Fund II, will support Merec’s strategy engaged by its founder Mhamud Charania towards building an integrated multinational packaged food group.

Merec aims to launch new categories, build brands, structure local partnerships and make new strategic acquisitions both in Mozambique and in Southern African countries.

The group will, then, strengthen its position locally, continue its product diversification into new wheat-based higher-value products and keep expanding its activity over the region.

Jean-Sebastien Bergasse, Partner at Amethis, said:
“Merec is a perfect partner for our first investment in Southern Africa. We believe Amethis is investing at a turning point of Merec’s development.”

The group, with our support, aims to become a regional platform of wheat based food products through the expansion of its distribution network at a local level and regionally. This transformation will also be supported by continuous innovation in order to diversify the product line.”

Mhamud Charania, Chairman of Merec Industries, said: “We are very excited about this partnership with Amethis, Kibo and Proparco. Through this investment, Merec is firmly poised to capture the next phase of its growth trajectory from a strong capital base to accelerate future growth.”

“We will be reinforcing our leadership positions in our key product categories, expanding our full value chain and investing in a modern industrial bakery for vertical integration. We look forward to leveraging the deep relationships of our new partners in the region and the operational support they bring to achieve our joint vision.”

Despite its latest economic turmoil, Mozambique benefits from a strong demographic profile, backed by strong historical GDP growth and a favourable geographic location.

The investors assess the country to be now macro-economic stabilized and ready for a promising outlook.

BellHouse Capital and CGA Law acted as the company’s transaction advisors while Anjarwala & Khanna and KPMG represented the investors.

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