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Investec Asset Management acquires control of one of Egypt’s leading grocery retailers

15 July 2019 Investec Asset Management

Investec Asset Management has completed its first private equity investment in Egypt by acquiring control of Spinneys Egypt (‘Spinneys’), a rapidly growing supermarket chain in Egypt. This marks the eighth investment by Investec Asset Management’s second pan-African private equity fund.

The business is one of the leading grocery retail players in Egypt, having expanded to a current footprint of 13 outlets, comprising two hypermarkets and 11 supermarkets, and including two new openings in the last eight months.

Spinneys offers a strong customer value proposition, combining a high quality-offering and shopping environment. This includes a focus on fresh produce and in-store bakeries, with competitive pricing and own-label ranges to serve a growing loyal customer base. The expansion has been implemented by the current management team led by CEO Mohanad Adly, who collectively have a long and successful track record in Egyptian retail. This team also led the expansion of the business beyond Greater Cairo, Giza and Hurghada into Alexandria, the North Coast, Menya and the recently announced new Tanta Mall. The launch of a home delivery service and the ongoing investment into a loyalty programme have also been key initiatives.

Mohanad Adly, CEO, Spinneys Egypt, said, “I am delighted to be partnering with Investec Asset Management for this new phase of development of the business. We believe their international experience and financial support will enable us to accelerate our growth and roll-out of new stores, which will help to serve our Egyptian consumer. We have invested significantly to create what we believe to be a very strong value-driven offering, and have a strong pipeline of new stores planned.”

Nick Marsh, Investment Principal, Investec Asset Management, commented, “We believe that Mohanad Adly and his team have developed a compelling proposition which is well positioned to address the consumer needs of a rapidly modernising Egyptian retail market, and this investment offers us the opportunity to support the accelerated expansion of the business across Egypt”.

Investec Asset Management established an African private equity capability in 2008. The Private Equity strategy focuses on growth capital and buyout investments in established mid-market and larger companies in Africa, with the objective of supporting the creation of local or regional champions in their respective industries.

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