Wednesday, September 27, 2023

Private equity house invests in Tunisian snacks producer

Admaius Capital Partners, a pan African private equity house, has, via a subsidiary of the Virunga Africa Fund 1, made a significant investment in Power Brands, the parent company of Céréalis S.A., Tunisia’s leading producer of salted snacks and a significant producer of baked goods.

Admaius will partner with the current owners of Power Brands, the Gahbiche family and Ekuity Capital, a leading Tunisian private equity investor, to build a leading branded FMCG platform through a combination of organic growth and selective acquisitions to expand and build on Céréalis’s portfolio of strong local brands.

The investment is consistent with Admaius’s strategy of investing in African FMCG companies positioned to benefit from growing incomes and increasing demand for products tailored to meet local needs.

Céréalis was founded in 2004 by current CEO Karim Gahbiche, a Tunisian national and Harvard graduate who started his career at Goldman Sach’s asset management business and comes from a family of entrepreneurs. Céréalis has grown rapidly to become Tunisia’s largest salty snacks producer with a range of leading branded products.

Admaius will also use its position to drive improvements in areas where Céréalis has the potential to have significant positive impacts on society such as reducing packaging waste, increasing recycling, carbon footprint reduction and improving nutrition. Admaius is a signatory of the UN Principles for Responsible Investment and is committed to aligning its investments with the UN Social Development Goals.

Karim Gahbiche, CEO of Power Brands and Céréalis, said: “I’m excited to be working with Admaius and Ekuity Capital as we enter a new chapter in the development of the business which I founded back in 2004. The experience and network that the Admaius team brings to the table will be invaluable in helping us to grow and develop a major North African FMCG platform.”

Amine Allam, MD of Admaius, said: “We are delighted to announce our second investment in another outstanding African business led by a strong entrepreneur. Céréalis is representative of the home-grown national champions that we typically look to partner with in North Africa and that are expected to outperform and create value for all stakeholders across the cycle. We look forward to working with Power Brands in the coming years to support the development of a new FMCG platform.”

Marlon Chigwende, Managing Partner of Admaius, said: “This investment is an excellent example of Admaius’s differentiated approach to investing in Africa that combines on the ground presence with global private equity expertise. With our strong networks across the continent and our deep expertise in our core sectors, I am convinced that this approach will result in superior outcomes for our investors and our investee companies.”

Mohammad Al-Nemah, CEO of Ekuity Capital, said: “This transaction is consistent with Ekuity Capital’s objective of enabling the development of a strong Tunisian business sector. Since investing in Céréalis 8 years ago, we have worked closely with Karim Gahbiche and his team and are enthused by the opportunity to support the continued growth and evolution of the business.”

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