Gozour subsidiary Rashidi El-Mizan has acquired Sudanese confectioner Al-Musharraf
Gozour, Citadel Capital’s integrated, multi-category consumer foods platform, has announced that its subsidiary, Rashidi El-Mizan (REM), the Middle East and North Africa’s leading confectionary brand has just finalized a deal to acquire 75% of Al-Musharraf, one of Sudan’s largest producers of halawa, biscuits and flour for an enterprise value of US$ 19 million. The acquisition will give Gozour exposure to the rapidly growing Sudanese market.
Citadel Capital, the leading private equity firm in the Middle East and Africa with US$ 8.3 billion in investments under control, acquired REM in late 2007. Today, Rashidi El-Mizan is a key Portfolio Company of Gozour; REM’s distribution network reaches 91% of Egypt’s 79-million-strong consumer market and continues to grow an export presence that already reaches 34 countries.
“From day one, Gozour has been a regional proposition that is being developed with a local base. Today, our local base has reached critical mass, so naturally the next step was to start developing the regional leg of the business,” said Citadel Capital Co-Founder and Managing Director Hisham El-Khazindar.
Sudan is a strategic market for Gozour. On the demand side, the country has consumption patterns similar to Egypt’s, and a 40-million-strong consumer base. Food products in Sudan sell at a 30% premium to the Egyptian market, and the country holds significant potential as both an agricultural producer and as a new export market for Gozour products.
According to Mohamed El-Rashidi, Chief Executive Officer of Gozour Foods, “Al-Musharraf, one of Sudan’s oldest and most recognized brand names for halawa and biscuits, was a natural fit for Gozour. The company has a complementary product mix that can be easily integrated with REM and may also serve as a gateway to the Sudanese market for Gozour’s portfolio. Gozour plans to use Al-Musharraf’s brand equity and distribution networks to fast-track exports from the rest of Gozour’s categories.”
Al-Musharraf’s underutilized production facility located in North Khartoum’s Bahari Industrial Zone has a current production capacity of 24,000 tons of halawa and 18,000 tons of biscuits per annum. The company also has a milling operation that produces 45,000 tons of flour each year which will be increased to 90,000 tons by the end of 2010.
“Although Al Musharraf is a distressed investment, we feel that we can turn things around with management, restructuring and targeted investments to upgrade production lines and increase capacity. The aim is to ensure the production facility is up to par with our operations in Egypt in terms of quality standards and manufacturing practices,” said El-Rashidi.
Work is already underway to fully integrate Al-Musharraf into the dry foods leg of Gozour, which includes Rashid El-Mizan halawa and tahina products, the newly launched lines of REM jams and tomato pastes and a variety of specialty foods products from Mom’s Foods. Management teams from Rashidi El-Mizan will be playing a major role in the integration of the two entities going forward.
Gozour is exploring additional regional expansion in select regional markets, including Algeria, Ethiopia, Uganda, and Kenya.
Gozour was established by Citadel Capital and a consortium of leading regional co-investors as a holding company for an integrated regional multi-category consumer foods platform. The group includes three primary lines of business: agri-foods and dairy (Gozour Agro), fast-moving consumer goods (FMCG, Gozour Foods) and intermediate goods such as corn, sugar, flour, maize and skimmed milk powder (Gozour Intermediate). Gozour companies include Dina Farms, El Aguizy, Rashidi El-Mizan, Enjoy, El-Misriyyeen, Mom’s Food and a stake in the National Company for Maize Production.
Citadel Capital is the leading private equity firm focusing on building regional platform investments throughout the Middle East and Africa in selected industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 17 OSFs now control Platform Companies with investments worth more than US$ 8.3 billion in 14 industries, including mining, cement, transportation, food and energy. Since 2004, the firm has returned more than US$ 2.4 billion in cash to investors, more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2004-2009, as ranked by Private Equity International). For more information, visit www.citadelcapital.com.
For more information, please contact:
Ms. Ghada Hammouda
Head of Corporate Communications,
Citadel Capital (S.A.E.)
g...@qalaaholdings.com (click to reveal this email)
Tel: +20 2 2791-4440 begin_of_the_skype_highlighting +20 2 2791-4440 end_of_the_skype_highlighting • Fax: +20 22 791-4448
Mobile: +20 16 662-0002