Amethis, Metier tap Nedbank to sell stake in Kenafric Industries 

KENYA – Private equity firms Amethis and Metier Private Equity Ltd. are reportedly seeking to exit their investment in Kenafric Industries Ltd., East Africa’s leading confectionery company, through a stake sale valued at over US$100 million. 

According to Bloomberg, the firms have engaged South Africa’s Nedbank Group Ltd. to manage the sale process, with additional advisory support from Kenya’s I&M Burbridge Capital.  

The proposed divestment aligns with an anticipated increase in private equity exits across Africa, driven by improving growth prospects over the next 12 to 24 months. 

Amethis and Metier jointly acquired a 40 percent stake in Kenafric’s confectionery and culinary business in February 2017.  

Since its establishment in 1987 by the Shah family, Kenafric Industries has evolved from a footwear producer into a diversified manufacturer, spanning confectionery, beverages, stationery, and spices. 

Kenafric is recognized for its extensive footprint in East Africa, producing over 40 million pieces of gum monthly and exporting approximately 45 percent of its products beyond Kenya.  

The company operates an expansive distribution network, reaching 40,000 retail outlets through a fleet of 200 motorcycles, serving informal traders and emerging mini-markets. 

According to Bloomberg, Kenafric and Nedbank did not comment on the matter while Metier said it is examining its position, which might result in it considering an exit. 

In August 2022, Kenafric partnered with India’s Britannia Industries to acquire Britannia Foods, a struggling biscuit maker in Kenya, in a deal valued at KSh 2.4 billion. This acquisition expanded Kenafric’s product portfolio and market presence.  

Additionally, the Competition Authority of Kenya (CAK) approved Kenafric’s acquisition of Economic Industries Limited in December 2024, facilitating its growth in the stationery market, where it holds a 12.3% market share. 

The potential sale by Amethis and Metier comes amid heightened private equity activity in Africa, with secondary sales and strategic investor transactions expected to dominate.  

The 2024 Deloitte Africa Private Equity Confidence Survey predicts increased exit activity due to improved economic prospects. 

“In light of an expected uptick in the growth outlook in the next 12 to 24 months, exit activity is expected to pick up across all regions, with secondary sales to PE and sales to strategic investors expected to dominate exit routes,” read the 2024 Deloitte Africa Private Equity Confidence Survey. 

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