Danone, the world’s biggest yogurt maker, is joining Dubai-based private equity firm Abraaj Group in acquiring Ghana’s Fan Milk International.
Abraaj, which previously said it would buy all the dairy producer, will now take a 51 percent and Danone the remainder, according to a statement today from the two companies. Under the agreement, Paris-based Danone will acquire a controlling share in the company in coming years.
Abraaj has invested more than $2 billion in more than 70 companies across Africa to profit from growth rates outpacing those in many developed nations. Fan Milk is a manufacturer and distributor of frozen dairy products across West Africa and had sales last year of about 120 million euros ($166 million.)
Shares of Fan Milk in Ghana, a unit of Fan Milk International, rose 0.2 percent to 6.67 cedis by 2:05 p.m. in Accra, heading for the highest on record. They’ve risen 88 percent this year, compared with the 75 percent gain on the Ghana Stock Exchange Composite Index.
Danone and Abraaj said they expect to complete the deal by the end of the year. It is the largest private equity transaction in sub-Saharan Africa in the fast-moving consumer goods industry, according to Abraaj.