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Sat 14 Oct 2017 09:48 AM

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Dubai's Abraaj buys majority stake in Colombian food firm

Investment firm says to lead QBCo's expansion across Latin America and the United States

Dubai's Abraaj buys majority stake in Colombian food firm

Dubai-based Abraaj Group has announced that it has acquired a majority stake in QBCo, the largest private label food manufacturing company in Colombia.

Abraaj said it will use its expertise to expand QBCo’s product categories, strengthen its retailer relationships, and focus on implementing operational improvements to support QBCo’s expansion across Latin America and the United States.

QBCo was established in 1961 as an oil and fats company by Iván Hoyos, member of a prominent entrepreneurial family in Colombia. In 2013, QBCo reinvented itself as a private label food manufacturing company focusing on four categories - edible oils, margarines, preserves/canned food and pet food.

Today, the company offers more than 55 products to over 150 clients in Colombia, Panamá, Ecuador and the United States.

The private label industry in Colombia is experiencing rising demand due to an increased penetration of discount retailers, with store numbers expected to triple in five years.

Miguel Olea, partner at Abraaj in Latin America, said: “There is an obvious growth story here, against the backdrop of a bullish dynamic across the region, presenting substantial possibilities for companies with strong business models. QBCo is one such company, as it is led by an experienced management team which has both diversified its product portfolio and achieved double-digit growth rates in recent years.”

QBCo marks Abraaj’s 19th investment in the Pacific Alliance and the fourth investment in Colombia.

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