Beloxxi Industries secures $80 million equity investment from 8 Miles, others

15 Aug 2016
Financial Nigeria


The President/CEO of Beloxxi Industries Limited said the expansion of the company's capacity will make it the largest producer of cream cracker biscuits in sub-Sahara Africa.

Obi Ezeudu, President/CEO, Beloxxi Industries Limited

Beloxxi Industries Limited (BIL), the Nigerian maker of Beloxxi Cream Crackers, has secured an $80 million investment from a consortium of investors led by 8 Miles, the Africa-focused private equity firm founded by Sir Bob Geldof, the Irish Rock star, political activist and private equity investor.  

The consortium of investors include Nigeria-based African Capital Alliance and DEG, a subsidiary of the German KfW Development Bank.  
The deal to buy a minority stake in BIL was closed on August 1, 2016, according to Mr. Obi Ezeudu, President/CEO of Beloxxi Industries.

“With this Equity Investment, we will expand our current operations from five production lines to about 10 production lines,” said Mr. Ezeudu. “That will increase our capacity from 40,000 metric tonnes to 100,000 metric tonnes of Beloxxi Cream Crackers per year.”

The investment comes as Nigeria wades through its toughest economic challenge in decades amid low oil prices, reduced government spending and rising inflation. The country's Manufacturing Purchasing Managers’ Index (PMI) has remained below 50 index points this year, indicating that the manufacturing sector has generally been on the decline.

“This is a landmark transaction that demonstrates the capacity for growth in the manufacturing sector in Nigeria. The investment will further increase the capacity of Beloxxi Industries and enable it explore the export market accessing the much needed foreign exchange whilst maximising the potential for growth in Nigeria,” Mr. Ezeude said.

The President/CEO of Beloxxi Industries Limited also said the expansion of the company's capacity will make it the largest producer of cream cracker biscuits in sub-Sahara Africa. The company plans to increase its staff strength from 2,500 to 6,000.

According to the Financial Times of London, Co-Founder and Co-Managing Partner at 8 Miles, Nathan Mintah, also confirmed that the fund’s investment would enable BIL to increase domestic production and expand its export base into neighbouring West African countries.

8 Miles portfolio includes an equity stake in Orient Bank Limited, Uganda; Verde Beef Processing, an Ethiopian agribusiness company; and Eagle Chemicals, an Egyptian family-owned business.

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