Abraaj acquisition of minority stake in CEPRO

Overview:

• UAE-based private equity investor Abraaj Group has acquired a significant minority stake in Cellulose Processing (CEPRO) from Mediterrania Capital Partners (MCP).
• The deal was made through Abraaj's second generation $375 million North Africa Fund (ANAF II), and provides MCP with a full exit of its 35% holding in the Algerian manufacturer and distributor of baby diapers and feminine sanitary pads.
• MCP originally invested in CEPRO in 2009, acquiring a 49% stake and participated in two of the three follow-on capital raisings held by CEPRO, diluting the growth investor’s stake to 35%.
• With rapid population growth and the rise of the middle class, Algeria represents an attractive market for this type of investment, and CEPRO's future strategy involves product development and geographic expansion.
• The deal marks the fourth full exit for MCP‘s first fund, Fons Mediterrania Capital, which has been fully invested and is currently in realisation mode. Three full and two partial investments remain in the fund.

Adam Majeed - Regional editor