AfricInvest, an African private equity firm has taken a minority stake in Justrite, a Nigerian supermarket chain.
According to a statement by the firm, the transaction builds on its decade-long relationship with the Justrite team that began with an investment from the firm’s credit vehicle, AfricInvest Private Credit.
“It marks the fifth investment of AF IV, AfricInvest’s flagship fund which invests in African mid-cap companies across diverse sectors to accelerate their regional growth, delivering attractive risk-adjusted returns and supporting inclusive and sustainable development,” it said.
It said the partnership with Justrite, will contribute to building affordable grocery outlets that source local products, support domestic agriculture value chains, and create new jobs while improving the availability of safe, high-quality foods.
“Building on a proven track record of 30 years, the team aims to help accelerate the company’s growth, putting in place enhanced governance tools and digitalizing the company’s processes and services.”
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Founded over 22 years ago by Aderinwale and Omoboye Fejeku, Justrite provides everyday essentials, such as groceries, confectionaries, and clothing to consumers in largely underserved neighborhoods.
It caters to consumers in the Southwestern Region of Nigeria with 17 stores across Lagos (Ikeja), Ogun (Abeokuta), and Osun State (Osogbo), with a combined shop floor exceeding c.20, 000m2 and 57,000 Stock Keeping Units.
“As Justrite embarks on a new growth phase, Tosin, Boye, and I are very excited to partner with Africinvest to help both our consolidation in the local market as well as our exploration of other markets outside Nigeria,” Ayo Aderinwale, co-founder and chairman at Justrite, said.
He said they look forward to benefiting from their immense experience across Africa to galvanize our expansion. “We welcome our new partners.”
Abiola Ojo-Osagie, senior partner and managing director at AfricInvest Anglophone West Africa added that the retail chain is a clear market leader with well-defined growth potential and we are very proud to be partnering with such knowledgeable and dynamic sponsors.
“The management team has demonstrated a strong willingness to sustainably expand their footprint across Nigeria and beyond. AfricInvest will support them to enhance their corporate structure and improve operational performance,” he said.