Helios Investment Partners has agreed to acquire up to a 49% stake in Stratton Africa Holdings Limited, the parent company of Mozambique's largest flour milling business, Merec Industries, from Invictus Investment.

The investment will be made through Helios Fund V, with Invictus Investment retaining a majority stake following completion of the transaction.

Financial terms were not disclosed. The transaction is expected to close by the end of 2026, subject to customary closing conditions, including regulatory approvals.

Founded in 1998, Merec processes wheat and corn into a range of products, including flour, pasta, biscuits and animal feed.

The company operates milling and production facilities in Mozambique's three principal port regions of Beira, Maputo and Nacala, making it the country's only miller with manufacturing operations in all three locations. It also owns a grain terminal at the port of Maputo.

Its distribution network serves wholesalers, retailers, bakeries, feed producers and distributors across Mozambique.

Invictus Investment acquired Merec in January 2025 through its purchase of Stratton Africa Holdings, as part of its strategy to expand its agricultural commodities and food processing operations across Africa.

Since the acquisition, Merec has improved its operating performance, according to the investors, prompting plans to expand into additional food categories in Mozambique and other markets within the Southern African Development Community (SADC).

The partnership with Helios is intended to support this expansion, alongside improvements in corporate governance, management capabilities and environmental, social and governance practices.

“The consumer non-discretionary sector is a key strategic focus for Helios, and we bring a proven track record of investing in and scaling resilient businesses that serve essential consumer needs across Africa,” said Tope Lawani, Co-Founder and Managing Partner of Helios Investment Partners.

“We see significant opportunity to build on Merec's strengths and are pleased to partner with Invictus Investment and the management team to support the company's next phase of growth.”

For Invictus Investment, the transaction will bring in a private equity partner to support Merec's development into a broader regional food processing and distribution business.

Amir Daoud Abdellatif, CEO of Invictus Investment, said the shareholders intend to expand Merec's operations beyond Mozambique while strengthening its existing position in the domestic market.

“Our shared ambition with Helios is to build on the business's contribution to food security and local employment in Mozambique and develop it into a regional food platform for Southern Africa,” he said.

The investment adds to Helios' portfolio of African businesses serving essential consumer markets, with the firm seeking to support Merec's expansion through its regional investment experience and operational expertise.

Akin Gump Strauss Hauer & Feld is acting as legal counsel to Helios, with GDA Advogados serving as Mozambican counsel. Freshfields is advising Invictus Investment.