Kibo Capital Partners (“Kibo”) announced its acquisition of a leading Mozambican food and non-food consumer goods distributor, Tropigalia S.A (http://www.tropigalia.co.mz). This transaction marks Kibo’s first acquisition in Mozambique, and the fifth deal from its second fund holding $63 million in financial assets.
The Hub’s investment team supported the transaction through commercial due diligence and a market study. To assess the company’s current distribution model and estimate the size of the potential market, the team visited eight informal markets in Maputo and Nampula, a cross-section of formal retail outlets, and conducted interviews with a number of market observers, researchers, and representatives from consumer goods companies.
Tropigalia operates in Mozambique's three main cities: Maputo, Beira, and Nampula. Founded in 2004 by entrepreneur Adolfo Correia, Tropigalia distributes food and non-food fast moving consumer goods (FMCG), managing over 3,000 SKU including brands such as Colgate-Palmolive, Pioneer Foods, Dr. Oetker, Milaneza and Bavaria. The company has a workforce of 374 employees.
The capital infusion will support growth as the company expands its product offerings capturing additional and exclusive distribution agreements with leading global brands, and launches new product lines under its “Gourmet” food brand. Tropigalia aims to expand its market share in the country by targeting the formal and informal market segments. In addition to capital, Kibo will work with Tropigalia to enhance corporate governance, strengthen operations, and develop its growth strategy.