UAE – Invictus Investment Company, a prominent agro-food enterprise listed on the Abu Dhabi Stock Exchange (ADX), has announced plans to acquire a leading flour mill business based in Mozambique.
This strategic acquisition marks a significant step in the company’s mission to expand its geographical footprint across the African continent.
According to the company, the move aligns with its vision of becoming an integrated agro-food enterprise and enhances its operations in the Middle East and throughout Africa.
Amir Daoud Abdellatif, CEO of the Abu Dhabi-listed company, said the acquisition, subject to necessary regulatory approvals, contributes to Invictus Investment’s long-term strategy to expand its agro-food business in “high-potential African markets”, and “build on operational capabilities in the midstream and downstream segments.”
Financial details of the acquisition have not been disclosed.
“This acquisition represents a key milestone in our growth strategy,” said a spokesperson for Invictus Investment Company.
“By establishing a presence in Mozambique, we are positioning ourselves to tap into the growing demand for food products across Africa while reinforcing our commitment to sustainable agricultural practices.”
Moreover, industry analysts view this move as a positive development for Invictus, signaling its intent to play a pivotal role in Africa’s agro-food sector.
This announcement follows Invictus’s earlier acquisition this year, when it secured a 60% stake in Graderco, a Moroccan grain trading company.
Graderco commands a substantial market presence in Morocco, with revenues surpassing AED 1.5 billion (US$410 million) in 2023.
The company imports, stores, and trades 2.5 to 3.0 million metric tonnes of grain and grain derivatives for human and animal nutrition annually, representing over 25% of the country’s imports.
With Invictus Investment boasting AED 8.1 billion (US$2.2B) in revenues and 5.37 million metric tonnes in commodity transaction volumes for 2023, the acquisition was poised to generate significant synergies between the two entities.
Additionally, the strategic partnership was anticipated to foster around 20% growth in consolidated revenues for Invictus Investment over the nine-month post-acquisition period in 2024.
Earlier this year, Invictus announced plans to invest US$272 million to expand into the MENA region via acquisitions and joint ventures with regional entities.
The expansion would see the Abu Dhabi-listed firm significantly increase its presence in Africa to potentially include Morocco, Algeria, Kenya, Tanzania, and Mozambique.
According to a statement issued by the company, the expansion will include diversifying into logistics and food processing.
Invictus trades grains, oilseeds, edible oils, animal feed, pulses, spray-dried gum Arabic, and meat, among other products, adhering to the highest global quality standards ensured by the certified labs it runs in different locations globally.
Its operations are supported by a thriving logistics and supply chain management business, handling and managing a network of over 150 material suppliers and trade consistently in more than 13 products, spanning 20 countries.
The company has its main procurement hub in the UAE and affiliate/associate offices in Sudan, Ethiopia, Chad, Egypt, Cameroon, China, and the USA, from where it manages the potent global supply chains.
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