Actis, a leading private equity investor in emerging markets, announced today that it has acquired a 70% stake in Sinai Holding for Marble & Investments (Sinai Marble). Sinai Marble is an integrated marble producer and, with exports to over 40 countries, is one of Egypt’s leading marble exporters.
With more than US$3.4 billion under management, Actis is one of the most experienced private equity investors in Africa, with nearly 60 years of experience investing in emerging markets. The firm has more than US$1 billion in funds under management in Africa alone, with offices in Cairo, Lagos, Nairobi, Johannesburg and Casablanca supported by a team of specialists in London. Actis first opened an office in Egypt in 2001.
The marble industry is quickly becoming one of Egypt’s globally competitive industries. As one of the few producers of scale in Egypt, and the leading player in terms of product quality and customer service, Sinai Marble is well positioned to take advantage of the increase in demand for high quality Egyptian marble.
Actis’s investment will help fund Sinai Marble’s ambitious expansion plans to increase internal quarrying capacity, from two quarries to seven, and introduce new quarrying areas and marble colours to its existing range of Egyptian marble. The funding will also be used to build a state of the art marble processing plant in Egypt’s Badr industrial city which will triple Sinai Marble’s finished product capacity.
Murray Grant, Partner, Actis commented: "The Egyptian government's positive economic policies and support for foreign direct investment continue to make Egypt an attractive investment destination for Actis. The government's vision and approach to developing the marble industry and our experience of working with management to transition family owned businesses to an institutionalised corporate structure will not only facilitate the next stage in Sinai Marble's development, but help to develop new export markets and create new job opportunities in Egypt."
Actis investment manager, Hossam Abou Moussa added: “We are delighted to have made this acquisition and look forward to working with the capable management team at Sinai Marble, led by Medhat Moustafa. We plan to help the business introduce world-class governance, health, safety and environmental standards which will turn Sinai Marble into an industry role model within this high growth sector and help consolidate its market leading position.”
Medhat Moustafa, Chairman and CEO at Sinai Marble, added: “We believe that Actis will be a valuable investment partner for us. Not only do they understand our business, but they also have an extensive global network, which we think can add value to our business and help develop new markets for export. This partnership marks the beginning of a new phase of growth for Sinai Marble.”
This investment comprises Actis’s two pan-African private equity funds (Actis Africa Fund 2 and the Canada Investment Fund for Africa which is jointly managed with Cordiant).