Invictus acquires Merec Industries, Mozambique’s leading flour milling company

UAE – Invictus Investment Company Plc, a prominent agro-food enterprise in the Middle East and Africa, has announced the successful acquisition of Merec Industries, Mozambique’s largest flour milling company.

The transaction was completed through the purchase of Merec Industries’ holding entity, Stratton Africa Holdings Limited, Mauritius, from current shareholders Amethis Fund II and Merec Financial.

Amir Daoud Abdellatif, CEO of Invictus Investment, highlighted the strategic importance of the acquisition, noting that the deal is expected to add significant scale and synergies between the two companies, increasing their consolidated revenues by over AED 1 billion (US$ 272 million) annually.

 “This deal will also accelerate other investments and the expansion of our trading activities, driving substantial EBITDA growth, which is projected to more than double by 2025,” he added.

The acquisition aligns with Invictus Investment’s long-term strategy to expand its agro-food business in high-potential African markets, develop new strategic partnerships, and enhance operational capabilities in the midstream and downstream segments.

 Abdellatif added that this move brings Invictus closer to its goal of becoming a fully integrated agro-food enterprise in the Middle East and Africa, with a target of achieving AED 25 billion (USD 6.8 billion) in revenue by 2028.

According to him, by focusing on key staples in the agricultural sector and food industry, this transaction will positively impact food security and economic growth in Mozambique, supporting job creation and driving export growth.

Merec Industries is a market leader in Mozambique, boasting strategically located mills, production facilities, and silos, alongside a robust portfolio of leading food brands. The company operates advanced milling facilities with an annual production capacity exceeding 800,000 metric tons (MT) of wheat and corn flour.

Additionally, Merec processes over 180,000 MT of pasta, biscuits, and animal feed annually and manages grain silos with a total storage capacity of more than 145,000 MT.

Its assets, strategically positioned in Beira, Maputo, and Nacala, enable comprehensive coverage of demand in Mozambique and neighboring countries. The company also owns a grain terminal at the port of Maputo, further solidifying its market dominance.

Invictus Investment projects a compound annual growth rate (CAGR) of 6% in demand for these products from 2022 to 2027, driven by population growth, urbanization, and rising incomes. The pasta market, in particular, offers additional growth opportunities, with a forecasted CAGR of 9.5%, fueled by evolving dietary preferences.

Jean Sébastien, Senior Partner at Amethis Fund II, expressed confidence in the transaction, stating that Merec’s growth in its core wheat milling business and diversification into wheat value-addition has significantly contributed to job creation and improved Mozambique’s food security, benefiting millions of consumers across the country.

 “We are pleased to announce the sale of our Merec shareholding to Invictus Investment. Our partnership with Merec has seen it establish a strong market position and brand portfolio by consistently delivering high-quality products,” he said.

The acquisition of Merec Industries marks Invictus Investment’s second major transaction in Africa, following its purchase of a 60% stake in Graderco, Morocco’s leading grains trading company, and its subsidiaries from Zalar Holding.

The company remains committed to exploring further acquisition opportunities, developing new joint ventures in strategic markets, and continuing its investments across key African markets.

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