Investec Asset Management buys controlling stake in Spinneys Egypt

This is the asset manager's first private-equity investment in Egypt.

South Africa-based asset management firm Investec Asset Management has bought a controlling stake in supermarket chain Spinneys Egypt.

The acquisition, which its value was not disclosed, will be concluded through Investec’s  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,” Investec Asset Management said without disclosing the deal’s value.

This is the asset manager’s first private-equity investment in Egypt and the eighth investment by its second pan-African private equity fund.

Spinneys Egypt CEO Mohanad Adly said Investec Asset Management’s “international experience and financial support” would help the chain accelerate its growth, including by adding new stores.

“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,” Adly said.

Nick Marsh, investment principal at Investec Asset Management, said Spinneys Egypt had “a compelling proposition, which is well positioned to address the consumer needs of a rapidly modernising Egyptian retail market”.

“This investment offers us the opportunity to support the accelerated expansion of the business across Egypt,” Marsh said.

Investec Asset Management established its African private equity operations 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.