Investec Asset Management has acquired a controlling stake in Spinneys Egypt, media reports said. The asset management firm’s acquisition also marks the eighth investment from its second pan-African private equity fund.
Investec acquired Spinneys from a private equity firm Abraaj which is based in Dubai. Spinneys is a supermarket chain operating in Lebanon, Egypt and Qatar. The value of the deal was not disclosed. The deal is also Investec’s first private-equity investment in Egypt.
The asset management firm said that it has established a strong presence in Egypt with a current footprint of 13 outlets which comprises two hypermarkets and 11 supermarkets, including its two new openings in the last eight months.
With regard to the investment, Spinneys Egypt CEO Mohanad Adly said “We have invested significantly to create what we believe to be a very strong value-driven offering, and have a strong pipeline of new stores planned.”
Spinneys has established a strong customer value proposition with competitive pricing. The supermarket giant’s expansion has been carried out by the current management team, led by Adly with a successful portfolio in Egypt’s retail market.
“I am delighted to be partnering with IAM for this new phase of development of the business and believe their international experience and financial support will enable us to accelerate our growth and roll-out of new stores, which will help to serve our Egyptian consumers,” he said.
Last year, Ezdehar and a few other private equity firms had proposed to acquire Spinneys from Abraaj, media reports said.