Actis acquires 30% stake in Egyptian snack producer Edita Food Industries

UK-based private equity firm Actis has acquired a 30% stake in Egypt-based snack producer Edita Food Industries for $102m, becoming the second largest shareholder in the company.

Edita Food Industries is an independent snack food business, offering products under brands such as Twinkies, Hohos, Molto, Todo and Bake Rolz.

The company sells about 2.5 billion pieces of croissants, cakes, and wafers per year, with an average price point of $0.1, and its revenues have grown at a compound rate of 21% per annum since 2009.

The deal builds on Actis’ three previous acquisitions in the North African food industry, including Mo’men, El-Rashidi El-Mizan and Poulina.

Actis stated that the demand for quality branded snack foods is high in Egypt due to rising middle class, a young and growing population and changing lifestyles, with consumers seeking affordable and easy-to-eat treats even in difficult times.

Actis Consumer head Rick Phillips said that the latest investment demonstrates the company’s long-term commitment to Egypt’s prosperity and its confidence in this market.

"Actis continues to proactively pursue investments in high quality, well-managed businesses across the region," Phillips added.

Edita chairman and chief executive officer Hani Berzi said: "We received numerous approaches from interested parties, but chose Actis because of its pan-emerging markets consumer sector expertise, and proven commitment to supporting strong resilient businesses regardless of economic cycles and political unrest."

With this deal, the stake held by the Berzi family has reduced from 60% to 42%, while the remaining 28% stake continues to be held by Greece-based snacks and chocolate confectioneries manufacturer Chipita.

Actis, headquartered in London, UK, is a private equity firm focused on investments in emerging markets in Africa, China, India, Latin America and South-East Asia.