Invictus Completes Acquisition of Merec Industries

Continuing its expansion spree in Africa, Invictus Investment Company, which is listed on Abu Dhabi Securities Exchange (ADX), a leading agro-food enterprise in the Middle East and Africa, has completed the acquisition of Merec Industries, Mozambique’s largest flour milling company.

The deal was made through the purchase of Merec Industries’ holding entity, Stratton Africa Holdings Limited, Mauritius, from current shareholders Amethis Fund II and Merec Financial, the company said in a regulatory filing with ADX on Sunday.

The acquisition of Merec Industries is Invictus Investment’s second major transaction in Africa, following the purchase of a 60% stake in Graderco, Morocco’s leading grains trading company, and its subsidiaries from Zalar Holding.

Invictus Investment remains focused on exploring further acquisition opportunities, developing new joint ventures in strategic markets, and continuing its investments across key African markets.

Merec Industries is a market leader with strategically located mills, production facilities and silos, along with a strong portfolio of leading food brands.

The company operates state-of-the-art milling facilities with a total production capacity of more than 800,000 MT of wheat and corn flour per annum.

It also has processing facilities for over 180,000 MT of pasta, biscuits and animal feed per annum, as well as grain silos with a total storage capacity of more than 145,000 MT. The company’s assets are strategically located in Beira, Maputo and Nacala to comprehensively cover demand in Mozambique and neighbouring countries. It also owns a grain terminal at the port of Maputo.

Adding to Synergies

Invictus Investment CEO Amir Daoud Abdellatif said that the takeover is expected to add significant scale and synergies between the two companies, increasing Invictus Investment’s consolidated revenues by over $272 million per annum.

According to him, the acquisition will also accelerate other investments and the expansion of our trading activities, fuelling substantial EBITDA growth, which is projected to more than double in 2025.

He said that this move contributes to our long-term strategy to expand our agro-food business in high-potential African markets, develop new strategic partnerships and build on their operational capabilities in the midstream and downstream segments.

“It also brings us a step closer to our goal of becoming a fully integrated agro-food enterprise in the Middle East and Africa and achieving $6.8 billion in revenue by 2028. With a focus on key staples in the agricultural sector and food industry, the deal is expected to positively impact food security and economic growth in Mozambique by supporting job creation and driving export growth,” he added.

With a population of over 34 million, growing at nearly 3% annually1, Mozambique is an attractive growth market for wheat-based products, where Invictus Investment expects a projected CAGR of 6% in demand from 2022 to 2027, driven by population growth, urbanisation and rising incomes.

The pasta market is also expected to offer additional avenues for business growth, with a forecasted CAGR of 9.5%, driven by evolving dietary preferences over time.

Jean Sébastien, Senior Partner at Amethis Fund II, said that their partnership with Merec has seen it establish a strong market position and brand portfolio by consistently delivering high-quality products.

Merec’s growth in its core wheat milling business and diversification into wheat value-addition has significantly contributed to job creation and has improved Mozambique’s food security to the benefit of millions of Mozambican consumers all over the country – a core pillar to Amethis’ investment strategy, he said.

He added: “We are confident that Invictus Investment will further enhance Merec’s growth by improving efficiency, product quality and seizing new opportunities. With Merec’s local expertise and Invictus Investment’s global capabilities, we are certain that the business will reach new heights.”