Nestlé SA announced today that it has signed an agreement to acquire Caravan Marketing Company SAE (“CMC”), a leading Egyptian instant coffee company owner of the Bonjorno brand.
The acquisition reflects Nestlé’s ambition to invest in Egypt and foster the development of the rapidly growing soluble coffee segment which has been gaining popularity among Egyptians.
Mr. Yasser Abdulmalak, Chairman and CEO of Nestlé Egypt: “We are pleased to conclude the signature of this agreement. Our investments and expansion plans in Egypt reflect the importance of this market to us. In the last 5 years Nestlé has made investments close to 1 Billion EGP in manufacturing and distribution facilities as well as skill development. We will continue to invest in the Egyptian market and this acquisition comes as a reaffirmation of that.”
Mr.Abdulmalak added: “The acquisition will capitalize on the complementary strengths of the two brands Nescafé and Bonjorno, accelerating the development of the soluble coffee market in Egypt. We are proud that Bonjorno a local brand loved by many Egyptians, will become part of our wide portfolio of international brands. We are keen on ensuring a smooth integration process in the best interest of the business and all employees. This is an exciting growth opportunity in a dynamic category.
The acquisition will combine Nestlé’s strong marketing & innovation capabilities with Caravan’s distribution model and significant presence in retail. The blend of people from the two organizations will create a leading team, ideally suited to drive future growth.”
Caravan Marketing was established in 2003 as a marketing and distribution company. The company serves the Egyptian market with a range of soluble coffee products, using its own factory.
Terms of the transaction were not disclosed.
ArabFinance
20 January
