DANONE: Danone to join The Abraaj Group in the acquisition of Fan Milk
International, a leading dairy products player in West Africa
--------- PRESS RELEASE --------
Paris, October 24^th, 2013
Danone to join The Abraaj Group in the acquisition of Fan Milk International,
a leading dairy products player in West Africa
Danone and The Abraaj Group ("Abraaj"), a leading investor operating in growth
markets, today announced a partnership agreement whereby Danone will join
Abraaj in the acquisition of Fan Milk International ("Fan Milk").
With 2012 sales of around €120 million, Fan Milk is the leading manufacturer
and distributor of frozen dairy products and juices in West Africa. Since its
establishment over 50 years ago, Fan Milk has grown rapidly through a unique
distribution network and currently operates in the markets of Ghana, Nigeria,
Togo, Burkina Faso, Benin and Ivory Coast.
The combination of Danone's know-how in the fresh dairy category alongside
Abraaj's 20 year investment experience, insights and local presence on the
African continent will boost Fan Milk's growth in a market with major
Arif Naqvi, Founder and Group Chief Executive of The Abraaj Group, said: "The
acquisition of Fan Milk represents the largest FMCG private equity transaction
in Sub Saharan Africa, outside South Africa. We look forward to partnering
with Danone in order to accelerate the growth and penetration of Fan Milk's
portfolio of leading consumer food brands across West Africa."
With this announcement, Emmanuel Faber, Danone Co Chief Operating Officer,
said: "This transaction represents a major step in Danone's expansion in
Africa. Fan Milk is a company with a unique business model driven by a
neighborhood sales and distribution platform working through 31,000
independent vendors. Danone is already present in North and South Africa, and
we will now be able to develop the dairy product market in West Africa".
The Abraaj Group had previously announced its agreement to acquire 100% of Fan
Milk through one of its Funds in June 2013. Abraaj and Danone will now
respectively acquire a 51% and 49% stake in Fan Milk International. Under the
agreement, Danone will in the coming years gradually acquire a controlling
stake in the business.
The partners expect to complete the transaction by the end of 2013.
For more information please contact:
Press Relations: +33 1 44 35 20 75
Investor Relations: +33 1 44 35 20 76
The Abraaj Group contact:
T: +971 (0) 506524717
Danone is an international company present on five continents. The group holds
top positions in healthy food through four businesses: Fresh Dairy Products,
Waters, Baby Nutrition and Medical Nutrition. Its mission is to bring health
through food to as many people as possible. Danone has more than 190
production plants and around 102,000 employees. In 2012, the company generated
sales of over €20 billion, with more than 50% in emerging countries.
Listed on NYSE Euronext Paris, Danone is a component stock of leading social
responsibility indexes including the Dow Jones Sustainability Indexes, ASPI
Eurozone, the Ethibel Sustainability Index and the ATNI index.
About The Abraaj Group
The Abraaj Group is a leading private equity investor operating in the growth
markets of Africa, Latin America, Middle East, South Asia, South East Asia,
Turkey and Central Asia. Employing over 300 people, the Group has 25+ country
offices spread across six regional hubs in Dubai, Istanbul, Mexico City,
Mumbai, Nairobi and Singapore. Local presence across these markets provides
the Group with unmatched expertise, know-how, proprietary transactional access
and the ability to grow partner businesses across borders.
The Abraaj Group currently manages US$ 7.5 billion across 20+ sector and
country-specific Funds. Funds managed by the Group have holdings in over 140
partner companies that collectively employ over 200,000 people and create
sustainable value in sectors including manufacturing, education, retail,
aviation, oil and gas, financial payments infrastructure, healthcare and
agribusiness. Examples of Abraaj partner companies in Africa include Brookside
Dairy, the largest dairy in East Africa, Vine Pharmaceuticals, the largest
pharmacy retail chain in Uganda and Athi River Steel Plant Limited in Kenya,
one of the largest hot and cold rolled steel producers in the region. The
Abraaj Group has eight offices across the African continent - Ghana, Nigeria,
Kenya, South Africa, Morocco, Algeria, Tunisia and Egypt.
The Abraaj Group is committed to the highest environmental, stakeholder
engagement and corporate governance standards. The Group is a signatory to the
United Nations-backed Principles for Responsible Investment and the United
Nations Global Compact.
Danone to join The Abraaj Group in the acquisition of Fan Milk Interna
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Source: DANONE via Thomson Reuters ONE
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