Amethis, an investment fund manager dedicated to the African continent, and its partners; Deutsche Investitions- und Entwicklungsgesellschaft (DEG), Mauritian Commercial Bank (MCB) Equity Fund and International Finance Corporation (IFC) have entered into a partnership with Naivas, marking the acquisition of minority equity stake worth Sh1.60 billion ($15 million) into the Naivas Group.
The investment is expected to help the company optimise business operations and further strengthen its corporate governance structures. According to David Kimani, managing director Naivas, the group is very excited about the partnership.
“As we embark on our next phase of growth, having an experienced investor with us will further strengthen the business. Amethis has a strong track record investing across Africa and in Kenya, which will add value to our operations,” he said.
Frank-Astère Ndyo-Butoyi, investment director, Amethis East Africa said they are honored during this time of transformation in the sector to be joining such an iconic Kenyan brand and are excited about the future.
Naivas aims at continuously improving its supply chain, developing its private label segment and strengthening relationships with suppliers
“By leveraging our new local office in Nairobi and Amethis’ experience in the African retail sector, we look forward to learning from and working with the many constituents who have built this brand and supporting them on a day-to-day basis in this new growth phase,” he said.
The investment, which is a part of Amethis Fund II, will also support the strategy implemented by the family and the management team towards the emergence of a national leader in the retail sector. Naivas aims at continuously improving its supply chain, developing its private label segment and strengthening relationships with suppliers. The group will then be able to consolidate its position and to further expand with new openings in the country.
The acquisition which was approved by the Competition Authority of Kenya (CAK) in March will see the Mukuha family, the founders of Naivas, remain the main shareholders after ceding stake to the special purpose vehicle owned by IFC, Amethis and other co-investors.
