Invictus Investment Acquires Mozambiques Largest Flour Miller

The deal was made through the purchase of Merec Industries’ holding entity, Stratton Africa Holdings Limited, Mauritius, from current shareholders Amethis Fund II and Merec Financial.

Strategically located in Beira, Maputo and Nacala, Merec Industry operates state-of-the-art milling facilities with a total production capacity of more than 800,000 MT of wheat and corn flour per annum. It also has processing facilities for over 180,000 MT of pasta, biscuits and animal feed per annum, as well as grain silos with a total storage capacity of more than 145,000 MT. It also owns a grain terminal at the port of Maputo.

Amir Daoud Abdellatif, CEO of Invictus Investment, commented: “The acquisition is expected to add significant scale and synergies between the two companies, increasing our consolidated revenues by over AED 1 billion ($272 million) per annum. It will also accelerate other investments and the expansion of our trading activities, fuelling substantial EBITDA growth, which is projected to more than double in 2025.

“This move contributes to our long-term strategy to expand our agro-food business in high-potential African markets, develop new strategic partnerships and build on our operational capabilities in the midstream and downstream segments.

“It also brings us a step closer to our goal of becoming a fully integrated agro-food enterprise in the Middle East and Africa and achieving AED 25 billion ($6.8 billion) in revenue by 2028. With a focus on key staples in the agricultural sector and food industry, the transaction is expected to positively impact food security and economic growth in Mozambique by supporting job creation and driving export.”

Invictus expands African investments

With a population of over 34 million, growing at nearly 3 per cent annually. Mozambique is an attractive growth market for wheat-based products, where Invictus Investment expects a projected CAGR of 6 per cent in demand from 2022 to 2027.

The pasta market is also expected to offer additional avenues for business growth, with a forecasted CAGR of 9.5 per cent, driven by evolving dietary preferences over time.

Jean Sébastien, Senior Partner at Amethis Fund II, added: “We are pleased to announce the sale of our Merec shareholding to Invictus Investment. Our partnership with Merec has seen it establish a strong market position and brand portfolio by consistently delivering high-quality products.

“Merec’s growth in its core wheat milling business and diversification into wheat value-addition has significantly contributed to job creation and has improved Mozambique’s food security.

“We are confident that Invictus Investment will further enhance Merec’s growth by improving efficiency, product quality and seizing new opportunities. With Merec’s local expertise and Invictus Investment’s global capabilities, we are certain that the business will reach new heights.”

This marks the second major investment by Invictus in Africa, following the purchase of a 60 per cent stake in Graderco, Morocco’s leading grains trading company, from Zalar Holding.