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AfricInvest, IFC acquire 36 percent stake in AutoXpress

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AutoXpress along Limuru Road. PHOTO | DIANA NGILA | NMG

Private equity firm AfricInvest and the International Finance Corporation (IFC) have bought a combined 36 percent stake in auto parts distributor AutoXpress from Actis for an undisclosed sum.

The exit by Actis comes after the PE firm had helped the company to grow in the local and regional market. AutoXpress more than doubled its branches to 56, and increased its market presence from two to four countries after Actis's investment in 2014.

AfricInvest’s managing director for East and Southern Africa George Odo said the investment would enable AutoXpress to further expand into the region.

“Our investment into this scalable business supports our vision of further growing regional companies and creating omnichannel experiences for consumers, resulting in increased access to goods and services,” he said.

AfricInvest which is part of a group based in Tunisia has previously made several investments and exits in the region.

They include in UAP Insurance Group, Family Bank Kenya, I&M Bank Rwanda, Prime Bank, Britam Holdings Group, Silafrica Plastics & Packaging International, Abacus Pharmaceuticals, and Kiboko FMCG and Brookhouse Schools among others.

AutoXpress offers an extensive range of automotive parts and services through a network of outlets across Kenya, Tanzania, Rwanda, and Uganda.

Its product range includes Pirelli tyres and other automotive consumables and accessories from various manufacturers. The company also offers car servicing.

“We expect to draw from the strong investment expertise of AfricInvest on the continent, and similarly the strong global experience of IFC, which together should take AutoXpress to the next level,” said AutoXpress managing director Sandeep Shah in a statement.

AutoXpress in March this year inked a Sh570 million deal with Rubis Energy Kenya to open outlets in the latter’s stations.

The auto parts dealer has independent branches and has moved to open more outlets adjacent to fuel stations, making it easier to attract motorists.

The partnership will see Rubis open 50 AutoXpress franchise servicing outlets to be known as XpressFit across the Rubis network of 450 outlets in the East Africa region within seven years.

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