Emerging Capital Partners (ECP), a private equity firm, has acquired a 33% stake in Algeria-based PepsiCo bottler Atlas Bottling Corporation (ABC).
Formed under a partnership between Pepsi Cola International and Group Mehri, ABC bottles Pepsi Cola, Pepsi Max, Mirinda and Seven-up.
The transaction forms a part of ECP's $80m investment plan.
The growth equity from ECP, along with the debt from commercial banks, will be used in developing a new production facility and expanding bottling capacity.
Additionally, ECP will provide technical assistance to ABC's management team by supporting them in professionalizing business functions such as governance and compliance.
ECP Paris director William Nkontchou said that Algeria is Africa's third largest soft drinks market and ABC's established track record in the sector sets it apart from its competitors.
"We seek to back proven global business models, like ABC, that are being pursued across Africa and deployed to international standards. We look forward to working alongside the management team as it continues to build on its successes," added Nkontchou.
