Published: October 8, 2014
Dubai-based private equity firm Abraaj has bought a majority stake in the South African food and personal care manufacturer.
Abraaj, the Dubai-based private equity company, has bought a majority stake in South African food and personal care manufacturer Liberty Star Consumer Holdings (Libstar), the firm announced in a press release. It completed the buyout of Libstar from its existing shareholders, private equity funds which include Metier, Old Mutual Private Equity, Development Partners International and Lereko.
Operating through 23 business units located in five of South Africa’s nine provinces, Libstar’s range of products include cheeses, sauces, packaging supplies, herbs and spices, beef and chicken, pasta, and imported European deli products. Its business units include Cape Herb and Spice, South Africa’s largest provider of private label spices, and Finlar, the exclusive provider of beef and chicken products to the country’s fast food industry. Sandeep Khanna, managing director at The Abraaj Group, said of the deal:
“The market opportunity for food and other consumer staples in Africa promises huge potential for growth, driven by rapidly changing trends in consumer tastes and demand, as well as ongoing developments within the FMCG [fast-moving consumer goods] industry itself, such as the increased use of private labels.”
South Africa’s US$56bn grocery retail market is expected to average annual growth of 7% up to 2018, while its US$14bn food services market is predicted to see average growth of 9.5%.