Abraaj, which had previously agreed to buy 100 per cent of the company, will own a 51 per cent stake with Danone holding the remaining 49 per cent interest.
Under the agreement, Danone will gradually acquire a controlling stake in Fan Milk.
The company makes and distributes frozen dairy products and juices in West Africa with a presence in Ghana, Nigeria, Togo, Burkina Faso, Benin and Ivory Coast. Its target markets have projected GDP growth rates of as high as 8.3 per cent.
Fan Milk posted sales of around €120m in 2012.
Abraaj CEO Arif Naqvi said, “The acquisition of Fan Milk represents the largest FMCG private equity transaction in Sub Saharan Africa, outside South Africa. We look forward to partnering with Danone in order to accelerate the growth and penetration of Fan Milk’s portfolio of leading consumer food brands across West Africa.”
The firm’s other recent deals include an investment in African Industrial Services Group, a Cote d’Ivoire-headquartered engineering services and component manufacturing company.
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