Amethis Seeks 30% Stake in Kenya Retailer on Expansion Spree

LAGOS (Capital Markets in Africa) – Amethis Finance plans to acquire a minority stake in Naivas, a Kenyan retailer looking to expand amid competition from new entrants including Carrefour SA.

The Africa-focused investment company’s unit Amethis Fund II agreed to buy 30% of the retailer, subject to regulatory approval, Naivas Chief Commercial Officer Willy Kimani said, declining to disclose the value of the deal.

Naivas plans to open as many as eight stores in Kenya annually for the next five years, a person with direct knowledge of the matter said, requesting not to be identified because he isn’t authorized to comment publicly. The new stores would sustain Naivas’ growth momentum in an industry where debt levels forced rivals Nakumatt Holdings and Uchumi Supermarkets Ltd. to close outlets.

To expand beyond its 60 stores in Kenya, Naivas will have to contend with competition from new entrants including Majid Al Futtaim Holding LLC, operator of French retailer Carrefour outlets, and Shoprite Holdings Ltd. from South Africa.

“As we embark on our next phase of growth, having an experienced investor with us will further strengthen the business,” Naivas Managing Director David Kimani said in an earlier statement Monday.

The three-decade-old Naivas has posted sales growth of 18% annually over the last five years, reaching $500 million in 2019, according to the person with knowledge of the matter.

“In a Kenyan retail landscape where many competitors from abroad are settling in, we are proud to support a very successful Kenyan business that has a strong understanding of the Kenyan consumer,” Jean-Sebastien Bergasse, Partner at Amethis said in the statement sent by Naivas. Amethis has an investment capacity of about 725 million euros ($804.7 million), according to the statement.