The EuroMena Funds are pleased to announce extending a convertible loan to Elephant Africa Holding, a holding company controlling both Bel Papyrus Ltd. and Bel Impex Ltd., the leading producers of tissue paper products in Nigeria. EuroMena III, the latest of The EuroMena Funds, alongside Amethis Finance and other co-investors have invested in Elephant Africa Holding, the holding entity of Bel Papyrus and Bel Impex operating in Nigeria.
Founded by Antoine Boulos and his brother Gabriel in Lagos in 1987, the group rapidly became the Nigerian leader in the production of jumbo reels and its conversion into toilet paper, napkins, facial tissues, kitchen towels and handkerchiefs with a 35% market share of finished products today. The group is a unique industrial asset in Nigeria and West Africa thanks to its production capacity at the highest international standards. The production is essentially based on paper collected locally and recycled internally, granting the group a significant competitive advantage and strong vertical integration. Moreover, the group has developed its own brands which are highly visible and commercialized throughout Nigeria thanks to a large modern and traditional distribution network. In addition, the company exports jumbo reels to converters mainly in ECOWAS countries.
Today, the group mainly serves Nigeria, Africa’s biggest market, with a population of 180 million and a fast-growing middle class of consumers. As part of its development strategy, the group intends to expand regionally while expanding its local product range to include diapers and feminine pads which remain largely imported today.
Romen Mathieu, Managing Partner of The EuroMena Funds, mentioned on the occasion “We are glad to have the first investment of our new fund EuroMena III in Africa given all the growth prospects the region presents. The collaboration between the Boulos Family, EuroMena and Amethis will contribute positively to the group’s development enabling it to achieve its ambitious growth plans”, while Gilles de Clerck, Partner at The EuroMena Funds, added “EuroMena will deploy its network and resources to explore and implement the group’s envisaged axes of growth with the objective of transforming it into a regional player in Africa”.
Laurent Demey, Managing Partner at Amethis, declared “Amethis is glad and proud to seal a partnership with the Boulos Family and support the group’s major evolutions while contributing to
the development of local consumer goods”. Jean-Sebastien Bergasse, Investment Director at Amethis, mentioned “Potential acquisitions and strategic partnerships in Africa are already being considered. Amethis will use its network and knowledge of the region to promote the growth of the group”.
“We are pleased to welcome Amethis and Euromena as partners in our paper business. We’re confident they will contribute actively to the business governance and support both its development in Nigeria and its regional expansion”, commented the Boulos family.
Kyte Partners acted as sole financial advisor to the Boulos Family on the transaction.
This transaction constitutes the first investment of EuroMena III as well as the first for The EuroMena Funds in sub-Saharan Africa signaling the strong appetite of the fund for this region. EuroMena’s strategy for sub-Saharan Africa, is to invest in sound companies with strong growth potential alongside the Lebanese diaspora who have deep experience and understanding of the region. EuroMena III is also expected to consummate its second transaction within the coming month confirming the solid investment momentum of EuroMena III in view of its second closing expected at USD200 million by Q12016.