The Abraaj Group, a Dubai buyout firm managing $7.5 billion of assets, agreed to buy dairy company Fan Milk International as it boosts Africa investments.
The acquisition of Fan Milk, a West African manufacturer and distributor of frozen dairy products and juices, is expected to close by the end of November, Abraaj said today in a statement. Financial details of the deal weren’t given.
Abraaj has invested about $2.2 billion in sixty-nine companies across Africa as the firm seeks to profit from growth rates outpacing those in many developed nations. The Nigerian economy is set to grow 7.2 percent this year according to the International Monetary Fund, compared with an estimated 5.6 percent growth rate for sub-Saharan Africa.
Fan Milk, through its subsidiaries, sells over 1.8 million products daily across West Africa and the deal is the largest ever in the so-called fast-moving consumer goods industry by a private equity firm in the region outside South Africa, according to the companies.
Freshfields Bruckhaus Deringer acted as legal advisers to Abraaj, with Norton Rose Fulbright advising Fan Milk, according to the statement.
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