A private firm has bought out Jambo biscuits. [Photo/africareview.com]
Jambo Biscuits has been officially bought out by a Nairobi-based private equity firm for an undisclosed amount.
Private equity firm, Catalyst Principal Partners, has acquired regional manufacturer of Britania Biscuits, Jambo Biscuits Ltd after raising $103 million worth of new capital from a syndicate of global investors just in March 2017.
The firm said that the bakery industry is a good investment driven by the high consumption rate deemed by the growing middle class. “Our investment was anchored on the innovation platform consistently achieved by the brand within the biscuits category, as well as positive market fundamentals in a sector that is growing faster than the GDP, propelled by younger demographics and growing disposable income,” said Catalyst chief executive Paul Kavuma.
The private firm is aiming to raise a total of $175 million of new capital by the end of this year.
On Monday, the firm added that the biscuits manufacturing business would be handled through a newly established firm, Britania Foods Ltd.
“The Britania brand has a strong heritage across Kenya with well-known products in the market. Our investment was anchored on the innovation platform consistently achieved by the brand within the biscuits category,” said Kavuma
Jambo Biscuits which started off with as a small bakery enterprise but later diversified into snacks and confectionery has been in the industry for over 3 decades competing with major brands such as Manji Foods, Nuvita brand, Mibisco, United Golden Biscuits, Sunveat Foods Ltd, Premier Cookies Ltd, and Nyanza Biscuits Ltd, among others.