Invictus Investment Completes Acquisition of Majority Stake in Morocco’s Graderco

Expanding its global footprint Abu Dhabi-based Invictus Investment Company, a leading agro-food enterprise in the Middle East, Africa and Asia, on Monday said that it has completed the acquisition of a 60% stake in Graderco and its subsidiaries from Zalar Holding, following all necessary regulatory and corporate approvals.

Graderco is one of the leading grain and cereal trading firms in Morocco, with over $410 million in revenues recorded for 2023. The company imports, stores and trades volumes ranging between 2.5 and 3 million metric tonnes of grain and grain derivatives for both human and animal nutrition annually, representing over 25% of the country’s imports.

With Invictus Investment 2023 financial results of $2.21 billion in revenues and 5.37 million metric tonnes in commodity transaction volumes, the acquisition will add significant scale and synergies between the two companies, and will result in approximately 20% growth in consolidated revenues for Invictus Investment over the 9-month post-acquisition period in 2024.

The acquisition is part of Invictus Investment’s long-term strategy to expand its geographic presence in key African markets, develop new strategic partnerships, and acquire specialised know-how and operational capabilities in downstream segments, the company said in a disclosure to Abu Dhabi Securities Exchange (ADX) this morning.

This move focuses on product categories of strategic importance for the development of Invictus Investment’s brand portfolio with a view to becoming a fully integrated agro-food enterprise, to better meet the evolving needs of its global clientele.

Strategic Market for Invictus

Invictus Investment CEO Amir Daoud Abdellatif said that Morocco is a strategic market for Invictus Investment, and this acquisition gives his company a strong local presence and a partnership with a recognised market leader, and is a key step in its long-term strategy to become a fully integrated agro-food enterprise.

Graderco’s diverse product portfolio, robust sourcing network, and extensive in-country warehousing and distribution capabilities will generate significant synergies with our global trading operations, he said.

“Looking ahead, we will continue to invest in downstream assets in the value chain – in Morocco and beyond – to enhance our supply chain capabilities and better serve our customers in the region,” he said.

Invictus Investment will provide Graderco with access to its extensive global network, trading expertise and risk management capabilities, all of which will support the company’s growth and development. The partnership will enable Graderco to expand its product offerings, strengthen its supply chain, and leverage Invictus Investment’s financial resources to scale its operations.

Together, the two companies will work to enhance Graderco’s market position and deliver strategic value to stakeholders in Morocco and beyond.

Zalar Holding CEO Driss Chaouni said that Invictus Investment has a wealth of experience and its global relationships will accelerate Graderco’s growth and strengthen his company’s position as Morocco’s top agro-commodities trading company.

Together, we look forward to capitalising on Graderco’s long history as a grain importer operating out of four Moroccan ports and six terminals distributed across the country. This transaction will build on the strong growth prospects in the region and deliver greater value to our stakeholders,” he added.

In 2023, Invictus Investment expanded into Morocco and other new markets, including Tanzania, Mozambique, Turkey, Malawi, Burundi and Rwanda, and increased its commodity transaction volumes in two existing markets: Algeria and Egypt.

Looking ahead, Invictus Investment is focused on exploring further acquisition opportunities, developing new joint ventures in strategic markets, and continuing its expansion in key African markets.