EFG Hermes concluded its advisory on the strategic partnership between private equity firm DPI and household appliances retailer B.TECH for Trading and Distribution, worth an investment of EGP 300m on Thursday, according to a press release.
DPI’s investment will fund B.TECH’s growth strategy, and is considered the former’s first venture into the Egyptian market. This is the sixth transaction managed by EFG Hermes Investment Banking since the beginning of 2016, which has a transaction portfolio of about $640m, including IPOs by dairy company Domty and healthcare firm Cleopatra Hospital.
Moustafa El Chiati, managing director of EFG Hermes UAE, said that the close of DPI’s and B.TECH’s transaction “reaffirms the continued international interest in Egyptian retail and consumer plays”.
He believes that the sector has growth potential, given the disposable income of Egypt’s youngsters.
The investment will improve B.TECH’s supply chain and IT infrastructure, as well as fund the launch of new stores, products, and services. Throughout the deal, EFG Hermes Investment Banking was the sole financial advisor to B.TECH, while Zulficar and Partners and White and Case came in as legal advisors.
Chairperson and CEO of B.TECH Dr. Mahmoud Khattab said: “The transaction demonstrates the resilience of the Egyptian economy and the strong fundamentals of the Egyptian consumer and retails markets, driven by a growing young middle class.”