By Andy Sambidge
Private equity firm says it has acquired interest in La Flèche Bleue Algérienne
Dubai-based Abraaj Group on Wednesday announced the acquisition, through one of its Funds, of a stake in La Flèche Bleue Algérienne (FBA), an Algerian logistics company.
Headquartered in Skikda, FBA is the largest company offering logistic services in Algeria and operates through long-term contracts with global clients.
Abraaj said its investment will enable the expansion of FBA’s footprint into other verticals of the logistics business, providing the company with ample resources and funds to further grow its market share in Algeria.
The private equity firm did not disclose the size of the stake or the value of the deal.
With Abraaj’s support, FBA’s growth strategy will focus on expanding its general capacity, developing more sophisticated logistics services, strengthening corporate governance standards and implementing a fully integrated reporting system.
Abraaj said it will bring significant expertise to FBA from the success of its prior investments in the global logistics sector, including Aramex in the Middle East, ARG in Mexico, Rentandes in Colombia, and Crossland Logistics in South East Asia.
Ahmed Badreldin, partner and head of MENA at The Abraaj Group, said: “FBA is our inaugural investment in Algeria and we are excited about entering Africa’s largest country by area and unlocking the immense local potential that exists in the country.
"The key opportunity for the logistics sector in Algeria is intrinsically linked to the underlying growth of the industries that it services. From agribusiness to FMCG, many of FBA’s clients are representative of the best-performing sectors in the country and display double-digit annual growth rates.
"This creates a long-term requirement for a strong logistics offering to complement the fast growth of Algeria’s economy and the rapid rise of its middle and consumer class.”
Mahfoud Ameur Zaimeche, founder and CEO of La Flèche Bleue Algérienne, said: “We welcome this important partnership with Abraaj given their excellent track record of supporting regional businesses and investing in the logistics sector across growth markets, globally.
"We look forward to having the Abraaj team join our board, and working closely with them on executing our ambitious development plan as we diversify into other sectors.”