El-Rashidi El-Mizan

El-Rashidi El-Mizan Image

Region

North Africa

Country

Egypt

Deal type

Management buy-out

Investment date

2003

Exit date

2007

Status date

Realised

Seeds of change

The humble sesame seed is a key ingredient in the North African diet. It is the basis of halawa and tahina – two staple food products and the key to El-Rashidi El-Mizan’s success.

El-Rashidi El-Mizan was established in 1889. In 2000, El-Rashidi was acquired by Bestfoods to serve as its entry platform in Egypt. Bestfoods subsequently merged with Unilever. In 2003, CDC acquired 65% of the equity through ordinary shares and an interest-free shareholder loan, in the first management buy-out in Egyptian history.

The long-term value proposition was to grow El-Rashidi’s core products and further enhance market share by introducing new value-added products, acquiring other branded food producers to create a diversified group, improving margins by automating production processes, establishing a robust health and safety programme and strengthening management information systems and corporate governance.

100% of El-Rashidi was sold to Citadel Capital in 2007, at an enterprise value of LE410m. By the time of exit, El-Rashidi had developed into an even stronger market leader, exporting to 25 countries with double the production capacity and double the product portfolio than at the time of CDC’s initial investment. El-Rashidi had also attained the highest level of accreditation in the industry for its Environmental, Social and Governance Management systems.