UAE-based investment firm Abraaj Group has acquired a majority stake in QBCo SAS, the largest private label food manufacturing company in Colombia.
The company was acquired through one of Abraaj’s funds.
The financial details of the deal and the size of the stake were not disclosed.
QBCo was established in 1961 as an oil and fats company, and in 2013, it was converted into a private label food manufacturing company focusing on four categories: edible oils, margarines, preserves/canned food and pet food.
Currently, the company offers more than 55 products to over 150 clients in Colombia, Panama, Ecuador and the United States. Its production facility, located in Buga, Valle del Cauca, employs around 400 staff.
Abraaj aims to help expand QBCo’s product categories, support the development of service levels, strengthen its retailer relationships, and focus on implementing operational improvements to help the company expansion across Latin America and the US.
Miguel Olea, partner at Abraaj in Latin America, said: “There is an obvious growth story here, against the backdrop of a bullish dynamic across the region, presenting substantial possibilities for companies with strong business models.”
According to the Nielsen Global Private Label report, Colombia ranks as the number one private label developer in Latin America.
The industry is benefitting from rising demand due to an increased penetration of discount retailers, with store numbers expected to triple in five years.
QBCo is Abraaj’s 19th investment in the Pacific Alliance and fourth investment in Colombia.
In the FMCG sector, Abraaj has invested in 20 companies, including Libstar, the largest unlisted food manufacturer in South Africa and Brookside Dairy, the largest dairy player in East Africa.