Libstar manufactures a large range of food and personal care products to large brands such as McDonald’s South Africa, Woolworths, Pick n Pay and Tiger Brands.
“We are very proud of the success Libstar has achieved over the last decade and would like to record our appreciation of the support we have received from our partners, Metier, Development Partners International, Lereko and Old Mutual Private Equity," said Andries van Rensburg, chief executive officer and Robin Smith, commercial director of Libstar.
"We are confident of jointly executing on the next phase of our pan-African strategy with Abraaj and look forward to this exciting stage in the company’s growth trajectory."
Davinder Sikand, partner and head of sub-Saharan Africa for the private equity investor, the Abraaj Group, added that the acquisition presents exciting opportunities for more investment partnerships in Africa.
“The acquisition of Libstar represents another exciting African investment partnership for us. Metier, along with the Libstar management team and employees, has built an impressive market position as one of the leading manufacturers and providers of high-quality products and services to the African foods service and retail industry,” said Davinder Sikand, partner and head of sub-Saharan Africa for the private equity investor, the Abraaj Group.
(WATCH VIDEO: Landscape of private equity in Africa)
“We look forward to adding our deep experience in helping accelerate the growth of our numerous FMCG and food businesses, not only across Africa but from our other growth markets as well.”
According to Abraaj, the 56 billion US dollar South African grocery retail market and the 14 billion US dollar food services market are estimated to grow at seven per cent and 9.5 per cent respectively by 2018.
(READ MORE: Abraaj Group invests in Ivorian industrial unit )
Sandeep Khanna, managing director of Abraaj added that he is confident that they can help Libstar reach new heights.
“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," he said.
"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."