Abraaj Group buys majority stake in SA's Libstar

Abraaj Group buys majority stake in SA's Libstar

2014-10-08 14:00

Dubai - Emerging market-focused private equity firm Abraaj Group has bought a majority stake in Liberty Star Consumer Holdings (Libstar), a South African food and personal care product manufacturer, it said on Wednesday.

Dubai-headquartered Abraaj bought shares in unlisted Libstar from its existing shareholders including Metier, Old Mutual Private Equity, Development Partners International and Lereko, it said in a statement.

Abraaj said it would continue to support Libstar's pan-African growth strategy, including in South Africa and sub-Saharan Africa. It did not disclose the size of the deal.

The fund, which has around $7.5bn of assets under management, has targeted a number of acquisitions in recent months in consumer businesses in large emerging markets across Africa, the Middle East and Turkey.

It is jointly bidding with TPG Capital to buy a majority holding in Saudi fast-food chain Kudu, while its investment management affiliate approached Egyptian snack maker Bisco Misr in July for a 51% stake.

In June, it said it intended to complete a take-over of Egyptian healthcare company Cairo Medical Center, and finalised an 80% stake buy of Turkish dairy products maker Yorsan in December.

Libstar operates across South Africa through manufacturing, supply and distribution and employs about 4 200 people. The $56bn grocery retail market and $14bn food services market are estimated to grow at 7% and 9.5% per year respectively to 2018, Abraaj said in the statement.