By: Mohamed Elkholy
Raya Holding for Financial Investments has announced an investment of approximately $40 million in its portfolio company, Raya Foods, led by Helios Investment Partners, Africa's largest investment fund, managing around $3.5 billion in assets. The exact amount will be determined by closing mechanics. Through this investment, Helios will acquire 49% of Raya Foods’ shares, strengthening their strategic partnership with the company and supporting its future growth plans. This investment aims to boost Raya Foods’ capabilities in the manufacturing and export of frozen foods and expand its global presence to achieve sustainable growth, further contributing to the national economy.
This funding is part of Raya Holding’s strategic plan to expand into international markets through its leading portfoilo company, Raya Foods, by increasing its production capacity to meet the growing demand for food manufacturing and exports. The company is also committed to delivering products that align with the latest global food market trends, including frozen vegetables and fruits. Raya Foods currently exports its products to over 50 countries, with a strong focus on European and American markets. It is the second-largest exporter of frozen fruits and vegetables in Egypt and aims to become the largest exporter in the country and the first to manufacture and export freeze-dried vegetables and fruits.
Commenting on the deal, Ahmed Khalil, CEO of Raya Holding, said: "We are pleased to announce this strategic investment, which reflects investors' confidence in Raya Holding’s vision and future plans to achieve leadership across various sectors. It also aligns with the group’s plans to increase foreign currency revenues, as Raya Foods is one of Raya Holding’s fastest-growing portfolio comapnies. Raya Foods has led the market in exporting frozen fruits and vegetables to over 50 countries. With the new freeze-drying facility, the company will diversify its products, increase production capacity, and boost exports."
He concluded: "This investment strengthens our diversified investment portfolio and supports our expansion plans into international markets, positively impacting the Egyptian economy and our company’s performance on the Egyptian Stock Exchange, creating added value for our shareholders."
Omar Abdelaziz, CEO of Raya Foods, added: "Securing $40 million in funding with a partner like Helios underscores the strong performance and rapid growth that Raya Foods has achieved over the past five years. This funding reflects Helios' confidence in our potential to achieve similar growth over the next five years. This investment marks a significant turning point in the company’s journey. We started as a small company, and today, we are the second-largest exporter of frozen fruits and vegetables in Egypt, with an annual production capacity of 50,000 tons. With the establishment of our second factory dedicated to freeze-dried fruits and vegetables, we aim to become Egypt's largest exporter.
He added: "This investment will accelerate our growth and expand our global operations, significantly enhancing our competitiveness. We are working to diversify our product portfolio to include freeze-dried fruits and vegetables, in line with our expansion strategy to meet the growing global demand for healthy and sustainable products." He concluded: "In the first half of 2024, Raya Foods became Egypt’s largest exporter of frozen strawberries, and we aim to build on this achievement to solidify our position as a leading provider of diverse food solutions for global markets."
Raed Barkatis, Head of Consumer and Healthcare at Helios Investment Partners, expressed his enthusiasm for completing this deal successfully and commented: "We are excited to support the growth of Raya Foods, and we see this partnership as an opportunity for mutual growth. Raya Foods is a leader in the frozen food sector in Egypt, and we are confident that this investment will enhance its production capacity and open new opportunities in global markets."
He added: "We strongly believe in the food sector, especially with the increasing global trend towards healthy foods. We are confident that this partnership will contribute to advancing agricultural development and enhancing food security."
Raya Foods seeks to solidify its position as a global leader in the healthy food and agricultural sectors by providing innovative food solutions that meet diverse consumer needs and building strong partnerships with customers. The company also focuses on supporting local farmers, enhancing the economy by providing foreign currency, and expanding its presence in more global markets.
