Actis, a UK-based private equity firm, is reportedly in the process of selling its 100% stake in Java House, East Africa’s largest restaurant chain, to Alterra Capital and Phatisa.
According to sources familiar with the transaction, Alterra Capital is expected to acquire the majority of shares, while Phatisa will obtain controlling rights.
Actis acquired Java House in 2019 from the Dubai-based Abraaj Group.
In January 2023, reports emerged that Actis was seeking to divest its stake in Java House, aiming to find a buyer by the end of that year.
The sale process has been ongoing, with Actis enlisting the services of Flamingo Capital Partners, an advisory firm with an African focus, to facilitate the transaction.
Notably, Java House has grown into one of Africa’s leading coffee brands and a dominant player in the East African hospitality industry.
The company operates over 95 outlets across the region, with a significant presence in Kenya, Uganda, and Rwanda.
In Kenya alone, Java House boasts over 70 branches, with a large concentration in Nairobi, demonstrating its strong foothold in the local market.
In addition to its coffeehouse chain, Java House has diversified its business operations.
It introduced Kukito, a venture specializing in grilled chicken dishes, as well as Planet Yogurt, the first self-service frozen yogurt store in East Africa.
The company also launched 360 Degrees Pizza, an Italian pizza chain offering a unique casual dining experience.
Alterra Capital is an international reinsurance and insurance company that specializes in providing solutions for property, casualty, and specialty lines.
It is involved in underwriting, risk management, and the sale of reinsurance products, catering to corporate and institutional clients.
Phatisa, on the other hand, is a private equity firm that focuses on investments across Africa.
The firm manages funds that target businesses in various sectors, with a particular emphasis on agriculture and food-related industries.