Danone has teamed up with The Abraaj Group, a private-equity firm focusing on emerging markets, to buy Fan Milk International, a dairy group operating in Africa.
Abraaj had announced in June it would acquire 100% of Fan Milk, a Denmark-based business selling dairy and juice products in six west African states.
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However, the companies said today (24 October) Danone would take a 49% stake in Fan Milk, with Abraaj holding 51% of the business.
Danone would bring “know-how in the fresh dairy category” to Fan Milk, the companies said. Abraaj’s “investment, insight and local presence” in Africa would “boost Fan Milk’s growth in a market with major potential”.
Abraaj founder and chief executive Arif Naqvi said: “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.”
Danone, which is present in South Africa and in northern Africa, said the deal was a “major step” in its expansion on the continent.
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By GlobalData“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,” Danone co-COO Emmanuel Faber said.
