Table of Contents
Key Points
- Raya Foods secures $40 million from Helios Investment Partners for growth, acquiring a 49% stake to enhance operational capabilities.
- Investment will boost frozen food production and fund a new 25,000-square-meter factory in Sadat City, strengthening export capacity.
- Raya Foods aims to become Egypt’s largest exporter of frozen fruits, already leading in frozen strawberry exports in 2024.
Raya Foods, a subsidiary of Raya Holdings founded by Egyptian businessman Medhat Khalil, has successfully secured a $40 million investment from Helios Investment Partners, one of Africa's leading investment funds managing approximately $3.5 billion in assets.
This strategic partnership allows Helios to acquire a 49 percent stake in Raya Foods, significantly enhancing the company’s growth trajectory and operational capabilities.
New factory and expanded production capacity on the horizon
The investment, announced by Raya Holdings, includes a secondary purchase, a capital increase, and a mezzanine loan convertible into equity. These funds will be directed towards enhancing Raya Foods' manufacturing and export capacity in frozen foods, facilitating the establishment of a new factory in Sadat City. Spanning 25,000 square meters, this facility aims to boost the company’s freeze-drying production capabilities.
Raya Foods currently exports to over 50 countries and aims to solidify its position as Egypt's largest exporter of frozen fruits and vegetables. The company has already emerged as the leading exporter of frozen strawberries in the first half of 2024. CEO Ahmed Khalil stated that the new freeze-drying facility will diversify product offerings and increase production capacity, positively impacting the Egyptian economy and shareholder value.
Omar Abdelaziz, CEO of Raya Foods, remarked on the significant growth the company has experienced since its inception, noting, “We started as a small company and have evolved into the second-largest exporter of frozen fruits and vegetables in Egypt.” He underscored plans for future expansion driven by the recent funding.
Raya Holdings: Key player in Egypt’s investment landscape
Founded in 1999 through a merger of companies owned by Medhat Khalil and Orascom Group, Raya Holdings is a key player in Egypt’s investment landscape. Khalil is a major stakeholder in the company. Recently, Raya secured a $24.7 million deal to support its operational growth.
Helios Investment Partners, a UK-based private equity firm co-founded by Nigerian entrepreneurs Temitope Lawani and Babatunde Soyoye, has a strong track record in fostering African investments and sustainable initiatives.
Raed Barkatis, Head of Consumer and Healthcare at Helios, expressed optimism about the food sector, especially amid the global shift towards healthier options. He noted that the partnership aims to enhance agricultural development and food security in the region.
