The EuroMena Funds successfully concluded its investment in Elephant Africa Holding the leading producer of tissue paper products in Nigeria.
The EuroMena Funds are pleased to announce extending a convertible loan to the leading producer and distributor of cellulose paper in Nigeria. EuroMena III, the latest of The EuroMena Funds, alongside Amethis Finance and other co-investors have invested in Elephant Africa Holding, the holding entity of Bel Papyrus and Bel Impex operating in Nigeria.
Founded by Antoine Boulos and his brother Gabriel in Lagos in 1987, the group rapidly became the Nigerian leader in the production of cellulose paper and its commercialization as toilet paper, napkins and tissues, with an expected 35% market share today. The group is a unique industrial asset in Nigeria and West Africa thanks to its production capacity at the highest international standards. The production is essentially based on paper collected locally and recycled internally, granting the group a significant competitive advantage and strong vertical integration. Moreover, the group has developed its own brands which are highly visible and commercialized throughout Nigeria thanks to a large modern andtraditional distribution network.
Today, the group mainly serves Nigeria, Africa’s biggest market, with a population of 170 million and a fast-growing middle class of consumers. As part of its development strategy, the group intends to expand regionally while diversifying locally its product range towards Hygienic products which remain largely imported today, such as diapers and sanitary napkins.
Romen Mathieu, Managing Partner of The EuroMena Funds, mentioned on the occasion “We are glad to have the first investment of our new fund EuroMena III in Africa given all the growth prospects the region presents. The collaboration between the Boulos Family, EuroMena and Amethis will contribute positively to the group’s development enabling it to achieve its ambitious growth plans”, while Gilles de Clerck, Partner at The EuroMena Funds, added “EuroMena will deploy its network and resources to explore and implement the group’s envisaged axes of growth with the objective of transforming it into a regional player in Africa”.
Laurent Demey, Managing Partner at Amethis, declared “Amethis is glad and proud to seal a partnership with the Boulos Family and support the group’s major evolutions while contributing to the development of local consumer goods”. Jean-Sebastien Bergasse, Investment Director at Amethis, mentioned “Potential acquisitions and strategic partnerships in Africa are already being considered. Amethis will use its network and knowledge of the region to promote the growth of the group”.
The Boulos family mentioned “We have found in EuroMena and Amethis the ideal partners to support the group in its local and regional development as well as help in the institutionalization of the group in view of a potential full exit in the coming years”.
Kyte Partners acted as sole financial advisor to the Boulos Family on the transaction. This transaction constitutes the first investment of EuroMena III as well as the first for The EuroMena Funds in sub-Saharan Africa signaling the strong appetite of the fund for this region. EuroMena’s strategy for sub-Saharan Africa, is to invest in sound companies with strong growth potential alongside the Lebanese diaspora who have deep experience and understanding of the region. EuroMena III is also expected to consummate its second transaction within the coming month confirming the solid investment momentum of EuroMena III in view of its second closing expected at USD200 million by Q12016.
The EuroMena Fund Management Team has raised more than USD 300 million to date from prominent investors, and has closed more than 20 investments and divestments. EuroMena III, its latest fund, had its first closing in October 2014 for a total consideration of USD100 million, backed by commitments of top tier institutions, High Net Worth Individuals, and family offices. Targeting a final size of USD 200 million by Q12016, the EuroMena Fund Management Team has been actively sourcing attractive transactions in the region.