Camel Flour Mills (CFM) acquires a majority stake in Five Stars Group (FSG). FSG specializes in the production of high-end flour brands.
CFM’s combined milling platform will produce a total capacity of over 4,500 mt/day. Five Stars brings integrated and fully automated storage, milling, mixing, and packaging operations to its facility in Suez and its automated port-integrated grain loading and unloading facilities.
“We are very excited about the prospects of our new platform. We are committed to building one of Egypt’s largest industrial groups serving a critical and vital sector for Egypt’s national food security. As Egyptian investors, we take great pride in advancing local industrial capabilities and contributing to the nation’s economic prosperity and stability. We are strongly supporting the government’s economic aspirations and contributing to the creation of employment opportunities for our youth and young professionals. Furthermore, we are working towards establishing the region’s first milling institute – aiming to train and graduate top calibers and cement Egypt’s leadership in the sector, supported by our expansive network of global leaders and partners in the milling sector,” Mohamed Al Moatabar, Executive Chairman of Camel Flour Mills, said.
The press release states that FSG’s journey was hurdled by financial challenges, particularly due to significant FX exposures, which makes this acquisition more complex than other typical acquisition deals. This is because it includes concluding agreements with the sellers, significant debt restructuring, and settlement with major banks.
The transaction’s advisory team included Zulficar & Partners law firm, Ripples Impact, EFG-Hermes Brokerage, Moore Egypt & others.
“This is a landmark transaction by all measures. This was not just a complex M&A transaction to acquire the shares of the two distressed companies and restructure banks’ debt, but a mission to salvage a major industrial asset, supporting our national economy, and protecting the livelihoods of thousands of workers and their families,” Mona Zulficar, Founding Partner of Zulficar & Partners law firm, stated.
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