Java House, a quick service restaurant chain in Uganda and other East African countries is set to change ownership for the fourth time in a space of a decade with the transaction awaiting approval from the Comesa Competition Commission.
Alterra Capital Partners, an Africa- focused equity firm is set to acquire Java House from Actis International, a U.K based limited liability company registered in accordance with the laws of England.
Actis holds an investment fund under the Actis LLP, a Mauritian investment holding company,which through its subsidiaries, is involved in the fast food and restaurants business, operating the Java House brand in Kenya, Uganda and Rwanda; Planet Yogurt in Kenya; (Three Sixty Degrees Pizza in Kenya and Rwanda; Kukito Africa in Kenya; and Foodscape Africa, a centralized procurement and commercial production kitchen which produces baked goods, coffee and cooked food.
Alterra Capital through its Alterra Africa Accelerator Fund (ZAR) will acquire majority shareholding into Java House, while Phatisa Food Fund will acquire a minority shareholding with control rights.
The proposed transaction will enable Actis to exit and realise its investment and will enable Alterra and Phatisa to acquire controlling stakes in the target business and promote its growth.
Alterra Capital Partners is an Africa-focused private equity firm that collaborates with entrepreneurs and management teams to foster business growth. The firm targets investments across diverse sectors, including food and beverages, hospitality, retail, telecommunications, technology, financial services, consumer products and services, infrastructure services, and logistics.
The Commission will, in accordance with the provisions of the Regulations, determine, among other things, whether the proposed transaction is likely to substantially prevent or lessen competition within the Common Market and whether the proposed transaction is or would be contrary to the public interest as provided for under Article 26 of the Regulations.
Ugandan enterprises urged to explore regional oil and gas opportunitiesActis first acquired the restaurant chain from Dubai-based Abraaj Group in 2019 which threw in the towel two years after acquiring the business in 2017.
The restaurant chain has undergone several ownership changes in the last one decade signalling tough economic conditions, and has faced stiff competition from other restaurant chains such as KFC, Cafe Javas as well as well major supermarkets that
Java House was established in 1999 at Adam’s Arcade in Nairobi with a mission to introduce the gourmet coffee culture to Kenya. Starting as a cozy coffee shop, we soon evolved into an American diner-style restaurant.
In October last year, the restaurant chain launched two more outlets into the Ugandan market in Muyenga and Shell Najjera marking a decade after its entrance in 2014.
The two outlets represented the 93rd and 94th locations in East Africa and the chain’s 5th and 6th outlets in Uganda.
