Danone is set to acquire 49% stake in Fan Milk, a frozen dairy products and juices manufacturer in West Africa.
The French dairy firm will join Dubai private equity firm Abraaj to acquire Fan Milk in a $360m deal, reported the Financial Times citing sources familiar with the matter.
Abraaj will initially hold 51% stake in the West African firm.
Fan Milk has a unique distribution network and currently operates in the markets of Ghana, Nigeria, Togo, Burkina Faso, Benin and Ivory Coast. In 2012, it had sales of €120m.
Danone said that it will gradually buy a controlling stake in the business in the coming years.
Abraaj founder and CEO Arif Naqvi said, 'The acquisition of Fan Milk represents the largest FMCG private equity transaction in Sub Saharan Africa, outside South Africa."
Danone COO Emmanuel Fabe said, "This transaction represents a major step in Danone's expansion in Africa.
"Danone is already present in North and South Africa, and we will now be able to develop the dairy product market in West Africa."
