Abraaj Group to buy Kenya’s Java House from Emerging Capital Partners

Abraaj Group, an emerging markets focused fund group, has agreed to Java House from private equity rival Emerging Capital Partners and Kevin Ashley, the company’s executive chairman.

Mustafa Abdel-Wadood, Managing Partner and Global Head of Private Equity at The Abraaj Group, said, “This landmark transaction, which showcases our ability to source outstanding assets across our target markets, is a compelling opportunity to build on Java House’s success story across sub-Saharan Africa, to create a true regional champion. Africa’s rapidly expanding middle class, sustained population growth and increasing urbanization is creating compelling investment opportunities in multiple sectors, and we believe Java House is ideally positioned to benefit from these trends.”

Ken Kuguru, Chief Executive Officer of Java House said, “As Java House aims to accelerate into its next phase of growth, we were seeking a partner that has the scale, platform and sector expertise to enable us to achieve our aspirations. The Abraaj Group is that partner of choice and we look forward to working closely with their team to extend our market leadership position across the continent.”

Java House Group was established in Nairobi in 1999. In 2012, Emerging Capital Partners acquired 90 percent a majority stake in the Company, with the founder retaining a 10 percent minority stake.

ECP has helped Java House grow from 13 shops in Nairobi into East Africa’s largest casual dining brand, building an ‘eat-out’ culture. Today, it has an unrivalled regional footprint of 60 stores across 10 cities in Kenya, Uganda and Rwanda.

The Company has three flagship brands: Java House, the largest coffee-led, all-day casual dining concept; Planet Yogurt, the region’s first self-service frozen yogurt chain; and 360 Degrees Artisan Pizza, an upmarket Italian pizzeria concept. Java House also operates commercial coffee roasteries, providing quality coffee and bean sales to its own stores and to supermarkets, hotels, restaurants and wholesale buyers.

Java House prides itself on the value it offers customers, from the quality of its service and products to the breadth and convenience of its locations. Java House currently serves over 320,000 guest checks per month, offering food and drinks covering 25 different food categories, and employs 2000 people.

Freshfields Bruckhaus Deringer LLP and Bowmans Kenya acted as legal advisors, while PwC acted as financial and tax advisors to Abraaj on the transaction.
The transaction will close once customary closing conditions and regulatory approvals are obtained.