Actis, a leading growth markets investor, announced that it sold its last 7.5% stake in Edita to 42 blue-chip investors from the US, the UK, Germany, South Africa, and the United Arab Emirates (UAE) through an “accelerated bookbuild on the Egyptian Stock Exchange.”
Actis initially became a 30 percent shareholder in 2013, but has now fully sold its shares in Edita with this final sale.
Edita’s chairperson and managing director Hani Berzi commented on the exit saying, “Actis has been a valued partner on Edita’s amazing journey over the last four years.”
“Their sector insights, together with their emerging markets expertise and professionalism, have been of great help to the company and to me personally as chairman and managing director,” he added. “Partnering with Actis has been a pleasure, and on behalf of all of us at Edita, I wish them all the best in their future projects.”
Sherif Elkholy, a partner in Actis and co-head of the North Africa section, said, “Working with Hani Berzi and his team has been a real pleasure.”
He added, “While we have successfully exited the investment today, the friendship and spirit of partnership between Actis and Edita will endure, and we will watch with a great sense of pride, as Edita continues to go from strength to strength.”
Since Actis’ investment, the company has launched its new headquarters and logistics hub, almost doubling production capacity with major investments in two new factories and upgrading its ERP system.
Additionally, the management has codified corporate governance standards to international levels.
Actis invested in Edita in the midst of a considerable geopolitical and economic uncertainty in Egypt.
Actis had the sector experience and the on-the-ground insight to back Edita’s quality and market position, which would enable it to continue its growth path in spite of the challenging economic backdrop.
Actis shared the management’s vision that the business’s strength would enable it to achieve resilient growth underpinned by the continuing demand for small ticket consumption.
CI Capital and EFG-Hermes advised Actis on the transaction.
Edita was founded in 1996 and is the largest, independent-branded snack food business in North Africa. It produces croissants, cakes, rusks, wafers, and candies.
It is the local leader in Egypt’s snack food sector with a 14% market share.
Edita has its own distribution fleet of over 500 vehicles and over 67,000 points of sale across Egypt, served through its 21 distribution centres.
The company also exports to 13 countries in the MENA region.