EuroMena, a major private equity fund based in Beirut, Lebanon, said it has acquired a minority stake in Retail Holding, one of the major retailers in Morocco.

It is EuroMena's 19th deal and comes in line with its growth strategy for the North and Sub-Saharen Africa regions, in which the Fund enjoys a wide network and significant market knowledge.

Retail Holding was established in the mid-80s by Zouhair Bennani, the chief executive officer of Best Financière, initially a single supermarket in Rabat, operating under the Hyper brand.

Over the years it grew substantially, and is now the franchisee for French retail giant Carrefour, apparel group Kiabi, Virgin Megastore and fast food chain Burger King.
 
EuroMena has accumulated significant experience in the retail sector through its investments in Khoury Home, the leading retailer of home appliances and electronics in Lebanon, and the Indigo Company, a Tunis based apparel retail of international brands with a strong presence in Morocco and Algeria.

This is the fourth investment of EuroMena III following its previous funding of Elephant (FMCG, Nigeria), in Indigo Company (apparel retail franchising, Tunisia, Morocco and Algeria), and in Credit Libanais (banking, Lebanon). Proceeds of the investment will mainly be used to fund the expansion of the Group.


The Group recently started its expansion to Africa by taking the control of CDCI (Compagnie de Distribution de Côte d’Ivoire), the second largest player in food distribution in Ivory Coast.

It is now the number one player in the supermarket segment, the pioneer and only player in the hypercash segment, and a leader in the commercial real estate sector.

Gilles de Clerck, the executive partner of The EuroMena Funds, said: "EuroMena is proud to join the retail leader at such an important time for the group, in which it is rapidly expanding in Morocco and regionally, led by an experienced management team."

Retail Holding is well positioned for a healthy growth in the coming five years as it will capitalise on the shifting retail landscape in Morocco, where the government is promoting the development of large modern retail spaces, and on the sub-Saharan expansion opportunities.

Paul Khoury, the partner of The EuroMena Funds, said: "We are confident that the group is well positioned for a healthy growth in the coming years, with the government promoting the development of modern retail and a shift in consumer behaviour towards the growing channel."

Bennani said: "We are proud to welcome The EuroMena Funds, a leading private equity firm invested in the MEA (Middle East and Africa) region, as a shareholder of the group and in supporting the development of the company, especially its Label’Vie and Compagnie de distribution de Côte d’Ivoire subsidiaries, both leaders in their respective markets."

The EuroMena Fund has raised more than $350 million to date from prominent investors, and has closed more than 25 investments and divestments, within its target region.

In June 2016, the Group completed the closing of its third fund, EuroMena III, for a total of $150 million, backed by commitments of top tier European institutions such as the European Investment Bank (EIB), the French Public Wealth Funds (Proparco), and the UK’s Development Finance Institution (CDC Group), the International Finance Corporation (IFC), The German Investment and Development Corporation (DEG), as well as high net worth individuals, and family offices.

EuroMena III’s mission is to invest in high growth local companies in the Middle East, North Africa and Sub-Saharan Africa, turn them into Regional Leading Groups, and prepare them for a profitable exit within a timeframe of 3-5 years.

In addition, The EuroMena Funds are planning on launching a Levant SME Fund and a MEA Debt Fund within the coming six months.-TradeArabia News Service