Nairobi, KENYA: Leading fast food restaurant chain Java coffee house has been acquired by Emirati investment group the Abraaj group.
This is according to a press release by the Emirati group on Monday, which has said that the group has acquired an 100% stake of the food entity which not only comprises of the fast food restaurant chains but other fast food shops namely Planet Yogurt and 360 degrees pizza.
“The Abraaj Group (“Abraaj” or the “Group”), a leading investor operating in growth markets, announced today it has entered into a definitive agreement to purchase, through its Funds, 100% of Java House Group (“Java House” or the “Company”), East Africa’s leading coffee-led casual dining chain, from private equity firm Emerging Capital Partners (ECP), and the Company’s founder and chairman, Kevin Ashley.” Read a statement from the group.
The coffee house was acquired following a year long auction that show different investors both Kenyan and foreign place their bids.
The company which started as a fast food restaurant chain in Kenya has gone ahead to expand to neighboring countries of Rwanda and Uganda with 60 branches.
The Abraaj group has revealed that it plans to expand the restaurant country into major countries in Africa.
“Abraaj, in partnership with the management team, will leverage Java House’s market leadership position and strong heritage to grow the Company into the leading pan-African casual dining / food services platform, expanding into new markets and through acquisitions. Together, they will build a leading home-grown African casual dining and food service group across East, West and North Africa.” Wrote the group.
The coffee house was initially founded by Kevin Ashely who sold 90% of it’s stake to Emerging capital partners in 2012.
Unconfirmed reports indicate that the founder Kevin Ashely would likely be retained by the Abraaj group as an adviser with the Abraaj group planning on holding the restaurant chain for 5 years.