CAURIS CROISSANCE SELLS ITS STAKE IN COMPAGNIE DE DISTRIBUTION DE CÔTE D’IVOIRE (CDCI)
Cauris Croissance, the second fund managed by Cauris Management, the West African private equity fund manager, confirmed the sale in 2013 of its stake in CDCI, an Ivorian company specialising in retail distribution with 110 stores across the country. The investment was made in 2007 and generated a cumulative return of 2 times the amount initially invested.
Cauris Management saw as early as 2007 the growth potential of the fast-moving consumer goods sector in Côte d’Ivoire and played a decisive role by bringing in two institutional co-investors to finance that growth. During the holding period, Cauris Management took part in rolling out a new strategy focused on high-margin products and on retail and wholesale trade. Cauris Management also helped to institutionalise the company and to improve governance and internal control.
The business of Compagnie de Distribution de Côte d’Ivoire (CDCI)
CDCI targets middle and low-income households, which make up most of the population. The company offers a wide range of food and non-food products through a network of wholesale, semi-wholesale and retail stores.
Cauris Management’s view on leaving the capital of CDCI
Noël Eklo, Chairman and Chief Executive Officer of Cauris Management, commented: « there is enormous potential in the retail sector in Côte d’Ivoire and in the region. During the holding period, and despite the heavy losses caused by the socio-political crisis of 2011, revenue grew by 128% and the number of stores by 45%. The company’s distribution network is well spread across Ivorian territory and we believe this should continue to support growth ».
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