Abraaj Capital Finalizes $1.41Bn Leveraged Buyout Of Egyptian Fertilizers Company
Dubai-based Middle East, North Africa and Asia private equity specialist Abraaj Capital has announced the finalization of a $1.41bn leveraged buyout of 100% of Egyptian Fertilizers Company (EFC). It is the largest private equity acquisition seen in the MENA region, and was made through the company’s Infrastructure and Growth Capital Fund (IGCF) and Abraaj Buyout Fund II. Co-investors include Dubai Capital Group (DCG), the regional asset management arm of Dubai Group, Saudi-based Rashed Al Rashed & Sons Group and other prominent regional firms. EFC, a private joint stock company based in the Northwestern Suez Economic Zone near Egypt’s Sokhna Port, is one of Egypt’s largest private sector fertilizer manufacturers and exporters. Its main products are granulated urea and liquid ammonia, nitrogen-based fertilizers that are widely used in the agricultural industry in Egypt and abroad. Abraaj adds that in the US and Europe demand for urea is increasing as a result of expanded production of biofuels such as ethanol. The EFC buyout makes Abraaj Capital one of the largest foreign investors in Egypt – it also became the single largest shareholder of Egyptian investment bank EFG-Hermes in September last year. Mustafa Farid, Chief Executive Officer of DCG, will join Abraaj representatives on the Board of EFC. Deutsche Bank acted as advisors and provided the acquisition finance for the transaction. Abraaj announced in February that it had made the first closing of IGCF with commitments of $500mn, anticipating this would climb to $2bn upon final closing (MEES, 12 February).
