Investec Asset Management (IAM) has completed its first private equity investment in Egypt, by acquiring control of Spinneys Egypt, a rapidly growing supermarket chain.

This marks the eighth investment from IAM’s second pan-African private equity fund.

The business is one of the leading grocery retail players in Egypt, having expanded to a current footprint of 13 outlets, compromising two hypermarkets and 11 supermarkets, and including two new openings in the last eight months.

Spinneys has developed a strong customer value proposition combining a high-quality offering and shopping environment, including a focus on fresh produce and in-store bakeries, with competitive pricing and own label ranges to serve a growing loyal customer base.

The expansion has been implemented by the current management team, led by CEO Mohanad Adly, who collectively have a long and successful track record in Egyptian retail.

They have also led the expansion of the business beyond Greater Cairo, Giza and Hurghada, into Alexandria, the North Coast, Menya and the recently announced new Tanta Mall.

The launch of a home delivery service and the ongoing investment into a loyalty programme have also been key initiatives.

Mohanad Adly, CEO, Spinneys Egypt, said: “I am delighted to be partnering with IAM for this new phase of development of the business, and believe their international experience and financial support will enable us to accelerate our growth and roll-out new stores, which will help to serve our Egyptian consumer. We have invested significantly to create what we believe to be a very strong value-driven offering, and have a strong pipeline of new stores planned.”

Nick Marsh, Investment Principal, Investec Asset Management, added: “We believe that Mohanad and his team have developed a compelling proposition which is well positioned to address the consumer needs of a rapidly modernising Egyptian retail market, and this investment offers us the opportunity to support the accelerated expansion of the business across Egypt.

We are excited about the very attractive growth opportunity for the business.”