Danone buys Fan Milk in West Africa
Danone is joining The Abraaj Group in the acquisition of Fan Milk International, a leading dairy products player in West Africa. Danone and The Abraaj Group (“Abraaj”), an investor operating in growth markets, has announced a partnership agreement whereby Danone will join Abraaj in the acquisition of Fan Milk International (“Fan Milk”). With 2012 sales of around €120 million, Fan Milk is the leading manufacturer and distributor of frozen dairy products and juices in West Africa.
Since its establishment over 50 years ago, Fan Milk has grown rapidly through a unique distribution network and currently operates in the markets of Ghana, Nigeria, Togo, Burkina Faso, Benin and Ivory Coast. The combination of Danone’s know-how in the fresh dairy category alongside Abraaj’s 20 year investment experience, insights and local presence on the African continent will boost Fan Milk’s growth in a market with major potential, the companies say. Arif Naqvi, founder and group chief executive of The Abraaj Group, says: “The acquisition of Fan Milk represents the largest FMCG private equity transaction in Sub Saharan Africa, outside South Africa. We look forward to partnering with Danone in order to accelerate the growth and penetration of Fan Milk’s portfolio of leading consumer food brands across West Africa.”
With this announcement, Emmanuel Faber, Danone Co chief operating officer, says: “This transaction represents a major step in Danone’s expansion in Africa. Fan Milk is a company with a unique business model driven by a neighborhood sales and distribution platform working through 31,000 independent vendors. Danone is already present in North and South Africa, and we will now be able to develop the dairy product market in West Africa.”
