Beloxxi has raised $80 million by selling a minority stake in its business to private equity firms 8 Miles and Africa Capital Alliance and a German DFI DEG. DEG is providing $10 million while 8 Miles and Africa Capital Alliance are providing the balance.
The biscuit manufacturing company intends to use the funds to ramp up production and satisfy significant levels of unmet demand in the country as well as the broader West African region.
According to Segun Adebanji, Africa Capital Alliance’s Head of FMCG, acting as the representative of the Lagos-based private equity firm.“Beloxxi demonstrates the potential of Nigerian companies to manufacture enjoyable quality products on a large-scale while also addressing Africa’s critical challenge of employing young people. Alongside the other members of the consortium, we will leverage our expertise and relationships from over 17 years of investing in West Africa to assist Beloxxi in achieving its strategic vision.”
“The snacks segment is a fast growing part of the consumer sector in Nigeria,” Nathan Mintah, Co-Founder and Co-Managing Partner of 8 Miles. “Our investment will build on the Beloxxi’s strong brand and help accelerate the Company’s expansion in Nigeria, in the wider West Africa region and beyond.”
“Our long term focus is to be one of the leading biscuit companies in the EMEA region,” Obi Ezeude, Beloxxi’s CEO and Founder said. “The completion of this funding process is the first of the many steps in the achievement of our objectives…the Beloxxi story has only just begun.”
Founded in 1994, Beloxxi started as a biscuit trading company but commenced manufacturing operations in 2006. It currently employs about 2,300 people and sells its products through a network of 400 distributors across the country.
The investment is a bet that rising populations, increasing incomes and levels of urbanization will continue to drive levels of growth within the biscuit sector which has expanded at rates of 10% to 15% in recent years. Having established a strong brand, its hoped these trends will help Beloxxi continue to deliver strong growth levels, which have exceeded 30% per annum in the last few years.
