Development Partners International (DPI) and African Capital Alliance (ACA) have sealed an investment partnership deal in Africa’s leading multi brand QSR group, Food Concepts Plc (Food Concepts).
The deal will see the sale of 31 per cent of Food Concepts by DPI, a leading pan-African returns and impact-driven private equity firm with a strong track record of investing across the continent and $2bn AUM, to ACA.
ACA is a leading pan-African alternative investment firm focused on managing investments across sub-Saharan Africa, with $1.2bn AUM. DPI will retain ownership of a majority stake in the Company.
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 three of Nigeria’s best known, most loved and fastest growing brands, Chicken Republic, PieXpress and Chop Box across 25 Nigerian states, as well as in Ghana, and an online delivery business growing at over 140 per cent year on year.
Led by a best-in-class and 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.
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,” he said.
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 per cent localised. Women comprise 51 per cent of the workforce and 57 per cent of the management team.
The business was cited at the 2021 G7 summit as a leading success story in the development of women leaders.
ACA and DPI will work together to support Food Concepts on its next phase of growth and help drive the business’ regional expansion strategy.
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. The company has grown sales at over 40 per cent every year since 2015, has developed true Nigerian “super-brands”, and is just at the beginning of its growth.” The Chairman of ACA, Okey Enelamah, said “We are excited to be part of this African success story and to work alongside partners who share our vision to empower businesses in Africa. Food Concepts is an excellent business with strong foundations built by the existing management
BY TIMES REPORTER