The Abraaj Group, a leading investor operating in global growth markets, has acquired a significant minority stake in Cellulose Processing (Cepro), a leading manufacturer and distributor of baby diapers and feminine sanitary pads in Algeria. The acquisition was made through Abraaj’s second generation North Africa Fund.
Founded in 2003 by Djamel Mehri of the Mehri Family, a prominent diversified family conglomerate, Cepro has grown to become the fourth largest player in the Algerian baby diaper segment in terms of marketshare.
Abraaj, in partnership with the Mehri Family, hopes to use its significant investment expertise to increase production capacity and efficiency, diversify Cepro’s product offering, enhance marketing efforts through a new branding strategy and expand its network by developing new distribution channels in Algeria and Sub-Saharan Africa.
Ahmed Badreldin, partner and regional head of Mena for The Abraaj Group, says. “Cepro represents an exciting investment partnership for us, as it is a direct beneficiary of the African consumer opportunity driven by market necessity, rapid population growth and the rise of the middle class.
“We will apply our global experience in the consumer businesses sector to create local value through job creation, industrial development and investment, and knowledge transfer. We look forward to working closely with the Mehri Family, one of the most established entrepreneurial groups in Algeria, to further strengthen Cepro’s position in the market and expand regionally with a focus on Sub-Saharan Africa," he adds.
Djamel Mehri, founder and chairman of Cepro, adds: “Having built the business over the last 10 years into one of the leading home grown diaper manufacturers in Algeria, we believe this is an opportune time for Cepro to expand its footprint nationally and regionally by offering the most advanced products to our clients. “Our group recognizes Abraaj’s deep experience in North Africa and its successful track record of developing FMCG businesses in growth markets globally. Together, we are confident of successfully executing our next phase of growth and look forward to a successful partnership,”