Abraaj Group, the Dubai-based investment fund, has acquired Kenyan coffee shop chain Java House Group for an undisclosed sum, but believed to be around $125m. The deal is expected to close within three months, subject to regulatory approval. Java House Group was established in Nairobi in 1999 by entrepreneur Kevin Ashley. It currently has over 320,000 customers per month and employs 2,000 people.
In 2012, Emerging Capital Partners acquired a 90% stake in the chain and implemented an aggressive growth strategy. The company has grown from 13 outlets in Nairobi in early 2012 to 60 outlets across Kenya, Uganda and Rwanda. Java House Group has also launched two further restaurant brands: Frozen Yoghurt and 360 Degrees Artisan Pizza.
Abraaj Group has stated that it intends holding onto the company for five years, during which it will increase the size of the chain by “several multiples” and take it into West Africa and North Africa.