Development Partners International (“DPI”), one of Africa’s leading private equity firms, has announced an investment through its second fund, African Development Partners II (“ADP II”), in Compagnie Marocaine de Goutte à Goutte et de Pompage (CMGP), the Moroccan market leader in irrigation systems and solutions.
DPI has acquired a majority stake in CMGP from the existing shareholders, the founding Moamah family and the Amethis Maghreb Fund I. This investment by DPI will represent the largest private equity transaction in Morocco in 2018.
Founded in 1995, CMGP is the leader in the Moroccan irrigation market and has experienced strong growth since its inception, posting turnover of over US$70 million. The company is involved in the distribution and integration of irrigation and micro-irrigation equipment, and offers a comprehensive range of products primarily to the agricultural and infrastructure sectors. In response to water resource constraints, CMGP offers its customers the best irrigation solutions to maximise agricultural yields and food production whilst minimising water consumption.
In collaboration with DPI, CMGP aims to continue diversifying its product range and expanding its geographical footprint across Africa.
Sofiane Lahmar, a Partner at DPI, said: “We are delighted to be partnering with CMGP, its CEO and founder Mr Youssef Moamah, and his strong management team, to support and accelerate the group’s growth both in Morocco and across sub-Saharan Africa. More than two-thirds of Morocco’s land area is classified as agricultural land by the World Bank, but only a small percentage currently benefits from irrigation systems. CMGP is ideally positioned to develop and provide these essential solutions for the agricultural sector. Furthermore, there is considerable potential for growth in irrigation across the African continent, and we intend to work closely with CMGP’s management on a number of strategic initiatives in this regard. ”
Runa Alam, CEO and co-founder of DPI, said: “DPI’s investment in CMGP will mark our second investment in Morocco through our ADP II fund, strengthening our presence in French-speaking Africa, which we regard as a key geographical area. The transaction is in line with our strategy of geographical and sectoral diversification, which involves identifying high-quality assets and partners in countries that complement our investment portfolio.”
Mr Youssef Moamah, CEO and founder of CMGP, said: “Our company has experienced strong growth over the past two decades. We believe that the partnership with DPI, one of Africa’s leading private equity firms, will enable us to continue our strong organic growth in Morocco and expand our presence into new markets across Africa. We particularly value DPI’s proven track record in partnering with family-owned businesses and its in-depth knowledge of the Moroccan and African markets. »
Naciri & Associés, Allen & Overy and PwC acted as advisers to DPI on this transaction.
