Thursday, September 30, 2021 / 04:32 PM / Release by African CapitalAlliance

Development Partners International (DPI) and African Capital Alliance(ACA) today announced an investment partnership in Africa's leading multi-brandQSR group, Food Concepts Plc (Food Concepts). The deal will see the sale of 31%of Food Concepts by DPI, a leading pan-African returns and impact-driven privateequity firm with a strong track record of investing across the continent and $2bnAUM, to ACA. ACA is a leading pan-African alternative investment firm focusedon managing investments across sub-Saharan Africa, with $1.2bn AUM. DPI willretain ownership of a majority stake in the Company.

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 haveturned Food Concepts into a business Nigeria can be proud of, building ourbrands and tripling our store footprint since 2015.

"We believe there is a significant runway for further growth thanks toour world-class corporate governance, a great African management team, andrelentlessly taking care of our 4,200 people and 15 million customers everyyear.

"I am excited to welcome ACA as a new strategic partner alongside DPIand look forward to benefiting from their shared operational expertise andindustry knowledge in the next chapter of our growth."

Established in 2001, Food Concepts is the leading Quick ServiceRestaurant (QSR) operator in West Africa. The business is focused on the mass market and operates three ofNigeria'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 anonline delivery business growing at over 140% year on year. Led by a best-in-classand experienced management team, and with support from DPI, Food Concepts hasgrown rapidly from 58 stores in 2015 to over 180 stores today disrupting theNigerian QSR sector with an affordable value proposition and demonstratingexceptional financial and operational performance across economic cycles.

Food Concepts maintains a strong commitment to operating responsiblyas a business, focused on developing local talent, and driving diversity andinclusion across the company. Since 2015, it has created around 3,300 jobsdirectly and many more in its supply chain, which is 99% localised. Women comprise 51% of the workforce and 57%of the management team.  The business wascited at the 2021 G7 summit as a leading success story in the development ofwomen leaders.

ACA and DPI will work together to support Food Concepts on its nextphase of growth and help drive the business' regional expansion strategy.

Runa Alam, Chief Executive of DPI, said "Food Concepts demonstratesthe tremendous growth the Nigerian mass market can offer for companies that areable to capture the opportunity. The company has grown sales at over 40% everyyear since 2015, has developed true Nigerian "super-brands", and is just at thebeginning of its growth. We are excited to welcome ACA as partners and lookforward to continuing our work with David and the Food Concepts team, as the businessenters the next stage of its growth. Food Concepts faced some real challengesearlier in its history and we are very proud of our role supporting managementin turning the business around and making it what it is today".

The Chairman of ACA, Okey Enelamah, stated "We are excited to be partof this African success story and to work alongside partners who share ourvision to empower businesses in Africa. Food Concepts is an excellent business withstrong foundations built by the existing management team andsupported by DPI. The Company has demonstrated its ability to innovate and, inthe process, has evolved into the leading QSR company in West Africa. Ourexperience in the FMCG sector and understanding of the local consumers'preferences will play an instrumental role in delivering further value to theCompany. Through our joint efforts with DPI and the management team, we areconfident that the Company will achieve its planned growth and sustainabilitygoals". 

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