Investee company name:
Sector:
Country of origin:
Region:
Aureos fund:
Total invested:
Date invested:
Investment type:
Golden Lay Farms
Agri-Processing
Zambia
Africa
Aureos Southern Africa Fund (ASAF)
US$4.35 million
February 2006
Management Buy-In (MBI)
Golden Lay Farms ("Golden Lay") is the largest table egg producer in Zambia’s ‘copperbelt’ region, controlling approximately 15% of the national market share.
Through an expert management team that Aureos had backed in a prior agri-processing transaction in Zambia, where significant returns were realised, Aureos invested US$4.35 million in the business in the form of equity and debt. The existing owner of the business was looking to exit and retire, and Aureos and management assisted in this exit by buying out 100% of the business.
At acquisition, Aureos and the management were focused on increasing the capacity of the business and implementing world-class bio-security measures. Within a year of investment the capacity of the plant has increased by 14%, which has led to first year turnover surpassing budget by 17%. Further expansion plans are in the pipeline through capacity growth as well as through acquisition of other assets within the Southern Africa region, with a view to creating a substantial mid-cap Southern African agri-processing business.
An integral part of Aureos’ investment philosophy is to ensure that all of its investee companies are responsible corporate institutions, contributing to the local communities in which they operate.