Deals

Danone and Abraaj inject $25m into Fan Milk

The investment in the jointly owned Ghana-based dairy company will be used to expand factory production

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Danone and The Abraaj Group have invested $25 million into Ghanaian dairy products portfolio company Fan Milk.

The investment will be used to open new production lines at an existing factory, creating around 200 jobs, according to the investors.

Danone and Abraaj acquired Fan Milk in 2013, with Abraaj taking a controlling 51 percent stake and Danone a 49 percent stake. A spokesperson for Abraaj confirmed that the ownership positions have switched, with Danone now the majority owner with a 51 percent stake and Abraaj holding the balance.

The investment continues Danone’s push in Africa which has seen it back companies in countries such as Kenya and the Ivory Coast in recent years. The French yoghurt maker is an active investor in the food and beverage space and recently launched a venture capital unit to support young businesses in the sector.

Abraaj is currently investing an almost $1 billion fund focused on sub-Saharan Africa and recently acquired a stake in the sub-Saharan fertiliser subsidiary of Singaporean petrochemicals group Indorama.