Africa Capital Alliance (ACA) has bought a 31 percent stake in Food Concepts plc from Development Partners International (DPI), the two private equity firms said Thursday. The value of the stake was not disclosed.
Following the sale, DPI will still retain ownership of a majority stake in the company.
Food Concepts is Africa’s leading multi-brand QSR group, operating three of Nigeria’s most loved and well-known brands, Chicken Republic, PieXpress and Chop Box.
DPI is a leading pan-African returns and impact-driven private equity firm with a strong track record of investing across the continent and $2.8 billion Assets Under Management (AUM) including co-investment.
ACA is a leading pan-African alternative investment firm focused on managing investments across sub-Saharan Africa, with $1.2 billion in AUM.
ACA and DPI will work together to support Food Concepts on its next phase of growth and help drive the business’ regional expansion strategy, according to a statement by the firms.
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Commenting on the deal, David Butler, Managing Director at Food Concepts, said:
“DPI has been there for us every step of the way as we have turned Food Concepts into a business Nigeria can be proud of, building our brands and tripling our store footprint since 2015.
“We believe there is a significant runway for further growth thanks to our world-class corporate governance, a great African management team, and relentlessly taking care of our 4,200 people and 15 million customers every year.
“I am excited to welcome ACA as a new strategic partner alongside DPI and look forward to benefiting from their shared operational expertise and industry knowledge in the next chapter of our growth.”
Established in 2001, Food Concepts is the leading Quick Service Restaurant (QSR) operator in West Africa.
The business is focused on the mass market and operates Chicken Republic, PieXpress and Chop Box across 25 Nigerian states, as well as in Ghana, and an online delivery business growing at over 140% year on year.
Led by an experienced management team and with support from DPI, Food Concepts has grown rapidly from 58 stores in 2015 to over 180 stores today disrupting the Nigerian QSR sector with an affordable value proposition and demonstrating exceptional financial and operational performance across economic cycles.
Food Concepts maintains a strong commitment to operating responsibly as a business, focused on developing local talent, and driving diversity and inclusion across the company. Since 2015, it has created around 3,300 jobs directly and many more in its supply chain, which is 99% localised. Women comprise 51% of the workforce and 57% of the management team.
The business was cited at the 2021 G7 summit as a leading success story in the development of women leaders.
Runa Alam, chief executive of DPI, said, “Food Concepts demonstrates the tremendous growth the Nigerian mass market can offer for companies that are able to capture the opportunity.
“Food Concepts faced some real challenges earlier in its history and we are very proud of our role supporting management in turning the business around and making it what it is today.”
Chairman of ACA, Okey Enelamah, also spoke of ACA’s excitement “to be part of this African success story and to work alongside partners who share our vision to empower businesses in Africa.
“The Company has demonstrated its ability to innovate and, in the process, has evolved into the leading QSR company in West Africa. Our experience in the FMCG sector and understanding of the local consumers’ preferences will play an instrumental role in delivering further value to the Company.”
