Stratlink has brokered the purchase of three top tier mattress manufacturers in Uganda, Malawi and Kenya Catalyst Principal Partners, a Nairobi-based private equity firm which also brokered purchase of Artcaffé Coffee and Bakery Limited
Catalyst Principal Partners, a Nairobi-based private equity firm has acquired three top tier mattress manufacturers in Uganda, Malawi and Kenya; Euroflex Limited, Vitafoam Limited, and Superfoam Limited respectively for an undisclosed amount.
The Ugandan and Malawian companies, Euroflex and Vitafoam, were advised exclusively by StratLink, a Nairobi based advisory firm.
StratLink is an emerging markets focused advisory company which is focused on the potential of sub-Saharan Africa and South East Asia.
The company identifies opportunities in the region and provides a vital linkage between investors and budding opportunities in emerging markets.
The deal represents the merging of the three mattress manufacturers into a consolidated company named Mammoth Foam Africa, held by the new entity Catalyst Mattress Africa (CMA).
Catalyst Principal Partners, last November announced the close of its second fund, achieving $155 Million (Kes. 15.5 Billion) of capital commitments from leading international and regional investors, as a successor to Catalyst Fund I, a $125 million fund raised in 2009.
According to Catalyst CEO, Paul Kavuma, the increased investment by International Institutional investors is a mark of confidence in the economic potential of the East African region. According to the United Nations Conference on Trade and Development (UNCTAD), the East African Region accounted for 18% of Africa’s Foreign Direct Investment (FDI) in 2017.
StratLink acted as the exclusive sell-side advisor to Art Caffé Coffee and Bakery, a restaurant group with multiple brand concepts throughout Kenya, in the transaction to sell a majority stake to Emerging Capital Partners (ECP).
StratLink provided comprehensive market research focusing on the nuances of the food and beverage sector in Kenya, changing demographics and what they portend for both opportunity and risk in the sector as well as the company’s brand positioning in an increasingly competitive market.
StratLink provided extensive due diligence and financial analysis of the business leading to the identification and negotiations with potential investors. This is yet another transaction through which StratLink has deployed the blend of exhaustive on-the-ground market research and robust capital raising support to an Africa based company.
In 2017, through a newly established firm, Britania Foods Limited, Catalyst has acquired the business and operations of Jambo Biscuits Ltd, being a leading biscuits manufacturer in Kenya with its flagship “Britania” brand.