Background

Artcaffé is a restaurant group consisting of multiple brand concepts throughout Kenya. The individual brands comprising the group are: Artcaffé Coffee and Bakery, Dormans Coffee shops, Ohcha Noodle Bar, Urban Burger Bar, and Tapas Ceviche Bar. The group has been operating for 10 years within the casual dining and quick-serve restaurant space in Nairobi, and currently operates 26 different restaurants in the city across its 5 distinctive brands. The group’s consistent focus on providing quality and affordable food and service has made them a leader in the sector, elevating industry standards in Kenya.

Approach

As transaction advisor, StratLink provided comprehensive advisory services to Artcaffe during the fundraising process. The services provided by StratLink included, but were not limited to, financial model building and extensive analysis, marketing document generation, investor targeting and selection, due diligence facilitation and term sheet negotiation. StratLink also provided exhaustive market research to the group, focused on the nuances of the food and beverage sector in Kenya and the changing demographics of the country.

Outcome

The shareholders of the company sold a majority stake of the company to a private equity firm for an undisclosed amount. The noteworthy transaction highlights the upward trajectory of the food & beverage and hospitality sectors in the region, and perhaps more significantly, the improving investment environment in Kenya and East Africa as a whole.