Java House, East Africa’s leading coffee chain has been sold by UK’s Actis. This makes it the fourth time the coffee maker is getting new owners. Java is being sold to Emerging Capital Partners and AfricInvest.
Java has been on an expansion drive across Kenya, Uganda, and Rwanda under Actis with the new owners expected to keep the expansion spirit going.
In Kenya, Java has been marking its 25th Anniversary and since beginning its 25th-anniversary celebrations earlier in 2024, Java House went full throttle in expanding its branch network with new outlets in Voi, Lang’ata, Loresho, Kenol, and Kisumu in Kenya, as well as new branches in Muyenga and Najjera in Kampala, Uganda.
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“Our roots are Kenyan, and by extension African, and we are committed to supporting the region in every way that we can. Through our different community initiatives, we are looking to impact every individual and family that comes in contact with our brand. Even as we expand our reach, we are looking to grow the positive social impact that our business has,” said Java House Group CEO Priscilla Gathungu.
The full transfer of Java to the new owners is in its final stages and currently awaiting approvals from COMESA and local authorities.
In 2012, Emerging Capital Partners (ECP) acquired a majority stake in Java House, facilitating its expansion from 13 outlets in Nairobi to over 60 stores across Kenya, Uganda, and Rwanda. ECP sold Java House to Dubai-based private equity firm Abraaj Group in 2017.
Following Abraaj’s liquidation, UK-based private equity fund Actis acquired Java House in 2019. By January 2023, reports indicated that Actis was seeking to sell its 100% stake in Java House, aiming to finalize the sale by the end of that year.
These ownership transitions are typical in the private equity sector, where firms invest in companies to enhance their value and eventually sell them for a profit. The decision to sell Java House aligns with Actis’s investment strategy to realize returns after a period of growth and value addition.
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