(Bloomberg) -- Two private equity firms have hired Nedbank Group Ltd. to sell their stakes in East Africa’s biggest candy maker, valued at more than $100 million, according to people familiar with the matter.
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Edmond de Rothschild Holding SA-backed Amethis and South Africa’s Metier Private Equity Ltd. intend to sell their stakes in Kenafric Industries Ltd.’s confectionery operation, said the people, who asked not to be identified because the information is still private.
The Shah family — which started the business — will also consider selling down its holding, they said. Kenya’s I&M Burbridge Capital is also advising on the deal, they said.
Kenafric and Nedbank declined to comment on the matter. Metier said it’s examining its position, which may result in it considering an exit. Amethis didn’t respond to a request for comment.
Kenafric started in 1987 as a footwear maker before expanding into confectionery, beverages, stationery and food spices. It has a presence in Kenya, Uganda, Tanzania, Rwanda, Congo, Burundi and Malawi.
East Africa is home to one of the fastest-growing and youngest populations in the world, who are joining a growing middle class that drives demand for Kenafric’s products. Sweets and chocolates made by non-African confectioners such as Nestle SA are expensive for many people living on the continent, driving demand for cheaper alternatives.
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The company is the largest manufacturer of gum in the region, selling more than 40 million pieces every month. Plans include making inroads into other markets such as Zambia, according to the people.
Britannia Industries Ltd., India’s top cookie maker, in 2022 teamed up with Kenafric for operations in Kenya as part of plans to expand in Africa.
Kenafric has built its own distribution network to reach both informal traders and upcoming mini-markets and shops. The company has a fleet of 200 motorbikes to reach some 40,000 retail outlets, the people said.
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--With assistance from Eric Ombok.
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