Investment | ACA invests in leading Nigerian biscuit company
LAGOS, Capital Markets in Africa: An investment consortium made up of African Capital Alliance (ACA), 8 Miles and Deutsche Investitions und Entwicklungsgesellschaft mbH (DEG), has announced an investment in Beloxxi Industries Limited (‘Beloxxi’ or ‘the Company’), a market leading Nigerian biscuit manufacturing company. The consortium has invested US$80mn for a substantial minority stake to expand the capacity of Beloxxi, to address significant unmet demand and to grow its regional distribution presence. Additional details of the transaction have not been disclosed.
Nigeria’s biscuit sector has seen double digit growth and this is expected to continue, driven by population growth and increasing urbanisation coupled with the growing popularity of biscuits as a convenience snack. The growth in the sector is also a result of a relatively young population with 63% of the population, about 115 million people, below the age of 25 years. Beloxxi is a market leader in Nigeria with significant market share and has one of the most popular and highest selling cream cracker brands in the market, with a reputation for high quality. It operates several production lines from its plant in Agbara, Ogun State and multiple warehouses across the country. The Company employs about 2,300 people and operates through a network of about 400 distributors. The Company has experienced growth rates in excess of 30% per annum in the last few years.
Commenting on the investment, Segun Adebanji, Principal & Head of FMCG at ACA, said: “We are excited to be investing in Beloxxi and collaborating with its Founder and CEO, Mr. Obi Ezeude. Beloxxi demonstrates the potential of Nigerian companies to manufacture enjoyable quality products on a large-scale while also addressing Africa’s critical challenge of employing young people. Alongside the other members of the consortium, we will leverage our expertise and relationships from over 17 years of investing in West Africa to assist Beloxxi in achieving its strategic vision. We look forward to being a part of a Nigerian manufacturing champion through our investment in Beloxxi.”
Obi Ezeude, CEO and Founder of Beloxxi, added: “I am very excited about the quality of investors we have attracted into Beloxxi as it aligns with our commitment to be the best in class in all our endeavours by adhering to global best practice standards. Our long term focus is to be one of the leading biscuit companies in the EMEA region. The completion of this funding process is the first of the many steps in the achievement of our objectives. The investment will enable us increase our capacity significantly and grow in both our domestic and export markets. The Beloxxi story has only just begun.”