Dangote-backed investors to acquire Kenyaan coffee chain, Java House

• Published On: 29 January 2025 at 17:06

A private equity firm led by Aliko Dangote plans to enter Kenya's food and beverage market by acquiring Java House, the country's leading coffee chain.

Alterra Capital, an Africa-focused private equity fund with Dangote as a key investor, is partnering with Phatisa Group to buy the restaurant chain from UK-based investment firm Actis for an undisclosed sum, according to Business Insider.

According to a notice from the Malawi-based COMESA Competition Commission, Mauritius-based Alterra will own the majority stake in Java House.

Verdict Food Service reports that Alterra and Phatisa have stated that their acquisition will not reduce competition because there are no overlaps with their existing operations.

Actis, which merged with US investment firm General Atlantic in October 2024, has been considering ways to exit Java House since September 2023, including a potential initial public offering, according to media reports.

Java House was founded in Nairobi in 1999 by American entrepreneurs Kevin Ashley and John Wagner and has since expanded to 73 locations in Kenya, Uganda, and Rwanda. It is part of the Java House Group, which also owns food manufacturer Foodscape and fast-casual restaurants like Kukito, Planet Yogurt, and 360 Degrees Artisan Pizza.

Java House's investment history includes Emerging Capital Partners' acquisition of a 90% stake from its founders in 2012.