A private equity firm backed by Aliko Dangote is preparing to enter Kenya’s food and beverage market by acquiring Java House, a leading coffee chain in the country.
Alterra Capital, an Africa-focused private equity fund with Dangote among its key investors, is partnering with Phatisa Group to purchase the restaurant chain from UK-based investment firm Actis for an undisclosed sum, according to Business Insider.
According to a notice from the Malawi-based COMESA Competition Commission, Mauritius-based Alterra will hold a majority stake in Java House.
Alterra and Phatisa have assured that their acquisition will not reduce competition, as there are no overlaps with their existing operations, according to Verdict Food Service.
Actis, which merged with US investment firm General Atlantic in October 2024, has been considering options to divest from Java House since September 2023, including a potential initial public offering, according to media reports.
Founded in Nairobi in 1999 by American entrepreneurs Kevin Ashley and John Wagner, Java House has grown to operate 73 outlets across Kenya, Uganda, and Rwanda. It is part of the Java House Group, which also owns food manufacturer Foodscape and fast-casual brands such as Kukito, Planet Yogurt, and 360 Degrees Artisan Pizza.
Java House’s investment history include the acquisition of a 90% stake by Emerging Capital Partners in 2012 from the founders.(Punch)
