Abraaj and Danone team for ice cream

Abraaj and Danone team for ice cream

Published: October 28, 2013

Private-equity firm sells stake in Fan Milk to Danone only months after striking initial buy-out.

Private-equity firm Abraaj Group has brought a corporate name into its recent acquisition of a Ghanaian business.

Danone, a global foods company, will join Abraaj in the takeover of ice-cream and frozen-yoghurt retailer Fan Milk International, which Abraaj agreed to buy in June.

Abraaj will now have a 51% stake in Fan Milk, while Danone will have a 49% stake. Danone is expected to take a controlling stake in the business in the coming years.

Based in Ghana, Fan Milk has grown over the past 50 years to have businesses in Nigeria, Togo, Burkina Faso, Benin and Ivory Coast. The company has annual revenues of about €120mn (US$165mn).

This deal is Abraaj's second in Ghana this month after it bought a majority stake in Ghana Home Loans (GHL), a provider of residential mortgages.