Aliko Dangote-Backed Firm Set to Acquire Coffee Chain in Kenya
- Aliko Dangote-backed private equity firm, Alterra Capital, is set to make its debut in Kenya's food and beverage sector
- One of the main backers of Alterra Capital, a private equity fund focused on Africa, is Aliko Dangote, the richest man in Africa
- According to a notification from Malawi's COMESA Competition Commission, the majority of the company would be owned by Alterra, based in Mauritius
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
With the purchase of Java House, a well-known coffee chain in Kenya, a private equity firm supported by Aliko Dangote is poised to enter the food and beverage industry in the country.
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Aliko Dangote, the richest man in Africa, is one of the major backers of Alterra Capital, a private equity fund with an emphasis on Africa.
Actis, a UK-based investment group, is scheduled to sell the restaurant chain to Alterra and Phatisa Group, another private equity business with an emphasis on Africa, for an unknown sum, Business Insider has reported.
A notice from the COMESA Competition Commission in Malawi states that Alterra, located in Mauritius, will own the bulk of the business.
Verdict Food Service claims that Alterra and Phatisa have indicated that their acquisition won't result in less competition because their current activities don't overlap.
With this acquisition, Java House has seen four ownership changes since 2012.
According to media sources, Actis, which joined US investment group General Atlantic in October 2024, has been looking into ways to sell off Java House since September 2023, including a possible IPO.
American businessmen Kevin Ashley and John Wagner established Java House in Nairobi in 1999, and it now has 73 locations in Kenya, Uganda, and Rwanda. It belongs to the Java House Group, which also operates fast-casual restaurants like 360 Degrees Artisan Pizza, Planet Yogurt, and Kukito, as well as the food manufacturer Foodscape.
As part of its investment history, Emerging Capital Partners purchased a 90% share in the chain from its founders in 2012. After Abraaj's collapse, Java House was later purchased by Actis in 2019 after being acquired by Dubai-based private equity firm Abraaj Group in a deal worth over $100 million.
The development comes after a significant milestone that saw the Dangote Refinery commence the production and distribution of PMS alongside other petroleum products.
This significant move marks a milestone in Nigeria's energy sector, which has grappled with petrol issues for decades, as none of its state-owned refineries are currently operational.
Dangote speaks on new petrol price
Legit.ng reported that the Dangote Refinery has blamed the recent petrol price increases on the global rise of crude oil costs.
The company disclosed that the adjustment in ex-depot prices is directly related to the increase in global crude oil prices.
Legit.ng earlier reported that Brent, the global benchmark for oil prices, rose from $75 per barrel to over $80 last week.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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Source: Legit.ng
