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.
“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.