Breaking News
Translate

Standard chartered backs new FMCG business

Standard Chartered’s Private Equity division has announced its strategic investment in Lodestone Brands. Lodestone Brands is seeking to build a leading FMCG (Fast Moving Consumer Goods) business in Sub_Saharan Africa and recently acquired 80 per cent of well_known South African sugar confectionary manufacturer Candy Tops (Pty) Ltd.

Standard Chartered Private Equity anticipates investing in excess of ZAR 1 billion of equity.
Marlon Chigwende, Head of Standard Chartered’s Africa Private Equity Group, stated, “Standard Chartered is confident that Lodestone Brands has the expertise, knowledge and capability to become a profitable and competitive player within Africa ’s FMCG sector.

We believe the experience and complimentary skills of the Lodestone team qualifies them to become a significant player across the African continent.”

Lodestone Brands is looking to work closely with portfolio companies to identify strengths, drive existing operational efficiencies, enhance margins and maximise the benefits of improved brand and product portfolio management techniques to build shareholder value. With Standard Chartered’s well_established African footprint in 14 Sub_Saharan countries, the Bank not only brings investment capital, but also the necessary market understanding and expertise to the partnership. In addition, Johan Van Schalkwyk, Director at Standard Chartered Africa Private Equity will take a seat on the Lodestone Brands Board.

Speaking on the company’s initial achievements, Nick Dennis, CEO Lodestone Brands, commented, “We are both excited and confident in Lodestone’s ability to make inroads into the FMCG market through strategic brand acquisitions, given our collective knowledge and experience within this sector, along with the backing of a global banking leader in Standard Chartered Bank.  Despite the presence of multi_nationals, the African FMCG space is still fragmented: a consolidation of key brands has significant growth potential.”

Increasing regional integration in Africa and the gradual elimination of trade barriers and tariffs are providing increasing opportunities for local FMCG manufacturers to expand their operations, providing favourable market dynamics_ all supportive of Lodestone Brands’ growth strategy.


Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.