Cepheus Capital Investment in Lion Brands


PRESS RELEASE: May 2020

Cepheus Growth Capital Partners (“Cepheus Capital”) is pleased to announce an investment into East African Lion Brands Manufacturing Share Company (“Lion Brands”), one of Ethiopia’s leading domestic manufacturers of fast-moving consumer goods(“FMCG”)products in the home care, personal care and food segments. With this investment, Cepheus Capital will hold a significant minority ownership stake and provide strategic, managerial, and operational support to Lion Brands.
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Lion Brands, a company under the umbrella of leading conglomerate East African Group PLC(“EAG”), based in the outskirts of Addis Ababa, is embarking upon a major expansion of its production capacity to meet the growing demand for its products in Ethiopia. The equity investment by Cepheus Capital will support the company’s expansion plans and also facilitate operational enhancements as well as raise Lion Brands’ environmental, social, and governance standards.
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TheGroupChairmanof EAG, Dr. Buzuayehu T.Bizenu, said: “We are delighted to have Cepheus Capital as our partner in Lion Brands, as we work together to turn the company’s potential into reality”.Mr. Batuael B. T. Bizenu, Managing Director for Investments who led the deal fromEAG’s side, commented: “CepheusCapital’s determination to raise Lion Brands’ operational standards is completely aligned with our desire for the company to be the leading FMCG manufacturer in Ethiopia, with a reputation for its commitment to supporting the community it operates within. We look forward to working with the team at Cepheus Capital in the years to come”.
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Cepheus Capital’s Managing Partners, Kassy Kebede and Berhane Demissie said in announcing the investment: “We see Lion Brands as an excellent investment opportunity that is very much aligned with our values and the growth trends and trajectory of the Ethiopian economy. As seen during the current COVID-19 pandemic, it is essential that local companies have the resilience and the resources to continue producing goods during difficult times. Cepheus Capital remains actively engaged in Ethiopia to support local businesses that provide essential goods and services within the country.”
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For CepheusCapital, the deal was led by Tim Hill, Investment Director, who said: “Lion Brands is a company with a strong portfolio of products, many of which enjoy tremendous brand loyalty from the Ethiopian consumer. With CepheusCapital’s investment to improve and expand the company’s operations, Lion Brands has a significant opportunity for growth. In addition, the leadership team within the East African Group share CepheusCapital’s vision of how to deliver the enormous potential of Lion Brands, and we are delighted to have such strong partners alongside us.”
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Cepheus Capital is a private equity firm that invests in Ethiopia’s most promising businesses and entrepreneurs. Besides providing capital, the firm also delivers management and operational expertise to its portfolio companies and assists them in the adoption of strong environmental, social, and governance standards. Cepheus Capital is finalizing the fund-raising for its first US$100mn fund that will be deployed across the manufacturing, agro-processing, and services sectors.

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Cepheus Capital invests in Ethiopia’s leading ceramics producer


PRESS RELEASE: November 22, 2019

Cepheus Growth Capital Partners (“Cepheus Capital”) is pleased to announce an investment into Tabor Ceramics Products Share Company (“Tabor Ceramics”), Ethiopia’s leading domestic producer of ceramic products. With this investment, Cepheus Capital will hold a significant minority ownership stake and provide strategic, managerial, and operational support to the company.
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Tabor Ceramics, based in Hawassa, is in the midst of a major expansion to increase all four of its main product offerings, which include tiles, sanitaryware, tableware and ceramic insulators used in electricity distribution lines. The equity investment by Cepheus Capital will support the company’s planned expansion and also help launch the production of new higher quality and higher value product lines being manufactured in Ethiopia for the first time.
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Ato Teshome Belamo, whose family owns Tabor Ceramics, said: “We are excited to partner with Cepheus Capital as we are at the beginning of a major factory expansion and are also aiming to improve our management systems and internal operations to be in line with international standards. We have a very close alignment with the team at Cepheus Capital and look forward to working with them in the years ahead.”
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Cepheus Capital’s Managing Partners, Kassy Kebede and Berhane Demissie, said in announcing the investment: “We see Tabor Ceramics as a promising investment opportunity that is very much aligned with the growth trends and trajectory of the Ethiopian economy—including urbanization, infrastructure expansion, and the rising numbers of middle-class consumers. The company has seen a growing demand for its products in recent years, and we anticipate this will continue over the coming years, reflecting large on-going housing developments as well as the expansion of the country’s electricity network. The mix of products manufactured by the company—covering retail, residential, commercial and industrial customers—also offers multiple growth and diversification opportunities.”
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The deal was led by Helaway Tadesse, Director, who commented: “Tabor Ceramics is a well-positioned import-substituting business that can replace a range of ceramic-made products currently supplied almost exclusively via imports. Moreover, as the company’s raw material inputs can be readily secured from local sources, the scope for future expansion is substantial.”
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Cepheus Capital is a private equity firm that invests in Ethiopia’s most promising businesses and entrepreneurs. Besides providing capital, the firm also delivers management and operational expertise to its portfolio companies and assists them in the adoption of strong environmental, social and governance standards. Cepheus Capital is finalizing the fund-raising for its first $100mn fund that will be deployed across the manufacturing, agro-processing and services sectors.

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