Abraaj buys majority stake in Libstar

UAE-based private equity firm The Abraaj Group has acquired a majority stake in Liberty Star (Libstar), a South African food and personal care goods manufacturer.

Abraaj bought the shares from existing shareholders Metier, Old Mutual Private Equity, Development Partners International and Lereko.

Libstar manufactures products such as cover cheeses, sauces and condiments, packaging supplies, baking aids, herbs and spices, beef and chicken products, pasta, imported European deli products, confectionery snacks, as well as detergents and washing powders. Woolworths and Shoprite in South Africa are an example of their customers.

Libstar employs 4200 people at its 23 business units, located in five of South Africa’s nine provinces.

Abraaj said in a statement that it will continue its financial and operational support for Libstar’s pan-African growth strategy, which includes the introduction of new product lines and the upgrade and expansion of existing Libstar plants. It also stated that it will continue to support Libstar’s successful buy and build strategy across South Africa and Sub-Saharan Africa.

Abraaj managing director Sandeep Khanna said: "In partnership with Libstar’s management team, who have reinvested substantially, we believe we can help transform the company to become a truly pan-African leader in the food and retail services market.

"The market opportunity for food and other consumer staples in Africa promises huge potential for growth, driven by rapidly changing trends in consumer tastes and demand, as well as ongoing developments within the FMCG industry itself such as the increased use of private labels."

Metier executive chairman Thierry Dalais said: "Libstar’s strategy originated in 2005 when we, along with Andries van Rensburg and Robin Smith, articulated an ambition to create and grow Libstar.

"We have been integrally involved in Libstar’s development and today are proud of what has been achieved. As private equity investors there comes a time when we need to pass the baton on and trust that Abraaj will run hard and be worthy owners of the business. We wish them all the very best."