Peries Foods, a South African meat processor, has sold a 40% stake in the business to local private-equity firm SpearCapital.

The PE firm bought the stake for US$4.5m via its Mauritius-based fund Spear Africa Holdings II, which is backed by European investors.

SpearCapital said the money will used to grow the Western Cape-based company’s processed meats division, including the creation of new products suitable for export into countries within sub-Saharan Africa.

Tim Leclercq, chief investment officer of SpearCapital, said Peries would be introducing “state-of-the-art manufacturing equipment to enable them to cost effectively produce higher-margin products”.

Steph Venter, the CEO and founder of Peries, said that with access to both Spear’s capital and African network, the business is poised for further expansion.

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By GlobalData

“The partnership is based on an already strong value system and I believe together we will create an exceptional company going forward,” he said. 

This is the first investment from Spear’s Fund II, which is anchored by investors including Norfund, a Norway-based private-equity fund owned by the country’s government.

Netherlands-based Triple Jump, Norway-based venture-capital firm Holta Invest and Gjensidige Stiftelsen, the foundation behind Norwegian insurer Gjensidige Forsikring, are also investors in the fund, which plans to focus on providing growth capital to consumer-led businesses across southern Africa.