Ascent Rift Valley Fund II Secures Significant Minority Stake In Kenya's Leading Packaging Business

Ascent Rift Valley Fund II Secures Significant Minority Stake In Kenya’s Leading Packaging Business

By Soko Directory Team / Published May 3, 2024 | 12:26 pm

In a strategic move to bolster growth and expand its market presence, Dune Packaging Ltd, a leading packaging solutions provider in East Africa has announced a significant minority equity investment in its business by Ascent Rift Valley Fund II (“Ascent”), the premier SME focused Private Equity Fund in East Africa (the “Transaction”).

The investment by Ascent Rift Valley Fund II marks a significant milestone in the packaging industry within Kenya and underscores the confidence of investors in the packaging sector and the region’s economic potential.

With this investment, Ascent Rift Valley Fund II aims to support Dune Packaging’s continued innovation, expansion into new markets, its already impressive ESG credentials, and the enhancement of its operational capabilities. The infusion of capital will enable Dune Packaging to accelerate its organic and non-organic growth trajectory thereby solidifying its position as a market leader in the packaging sector across the East African region.

The Transaction was led and managed by Tradeways, the specialist advisory boutique with a focus on the Middle East and Sub-Saharan Africa.

Bowmen, with a team led by Paras Shah and Vruti Shah, were the legal advisors to Dune Packaging, whilst DLA Piper Africa, Kenya (IKM Advocates), led by David Lekerai and Deborah Sese, supported Ascent by conducting legal due diligence, drafting, and negotiating the investment documents and managing the completion process.

Tradeways, together with Bowmans, played a critical role in advising the shareholders of Dune Packaging and the company itself from initial strategic thinking, preparation, negotiation, and transaction execution. Their expertise and support were instrumental in ensuring a smooth and successful outcome for all parties involved. On its part and in addition to DLA Piper Africa, Ascent was also advised by Deloitte and Viva Africa Consulting LLP.

“We welcome Ascent Capital Management Africa II as our strategic partner and investor,” said Rohin Chandaria, CEO of Dune Packaging “After a well-thought-out transaction process, we were very comfortable with Ascent given their intimate understanding of the terrain and their excellent credentials of working alongside family businesses to unlock value. Their investment not only validates our market leadership but also provides us with the resources and expertise to pursue our growth objectives ambitiously.”

Commenting on the Transaction, Vinod Bussawah, Director at Ascent Capital Management Africa II Ltd stated, “We are excited to partner with Dune Packaging, a company with a strong track record of delivering high-quality packaging solutions. This investment aligns with our strategy of backing exceptional businesses with significant growth potential. We look forward to working closely with the management team to drive value creation and capitalize on opportunities in the dynamic East African market. This investment will help further improve the alignment of Dune Packaging’s operations with best practice environmental social and governance policies in line with the United Nations SDG goals. The investment adds to ARVF II’s record of supporting local manufacturing entities in Eastern Africa.”

“Executing transactions of this nature have their inherent challenges. However, in this instance, it was a pleasure to help the well-organized shareholder group in defining their strategic vision and guiding the execution this transaction from initial valuation to closing successfully with Ascent, who clearly understand the potential of the business and family business dynamics.” Said Uday Bhasin, Managing Director of Tradeways.

Dune Packaging has established itself as a trusted partner for businesses across various industries, offering a diverse range of packaging solutions tailored to meet the unique needs of its clients. The company’s commitment to innovation, sustainability, and customer satisfaction has positioned it as a preferred choice for packaging requirements in Kenya and beyond.

The Transaction reflects the growing investor interest in Africa’s packaging industry, driven by the region’s rapid urbanization, rising consumerism, and increasing demand for packaged goods. By leveraging Ascent’s financial backing and strategic guidance, Dune Packaging is poised to capitalize on these favourable market dynamics and further strengthen its position as a packaging powerhouse in Kenya.

About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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