Danone to Jointly Acquire West African Dairy Business
Danone and The Abraaj Group, a leading investor operating in growth markets, have agreed to jointly acquire Fan Milk International. With 2012 sales of around Eur120 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 potential.
Arif Naqvi, founder and group chief executive of The Abraaj Group, says: “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.”
Emmanuel Faber, Danone co chief operating officer, says: “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.
