Actis sells Java House to two Africa-focused private equity firms

Africa-focused private equity firms Alterra Capital and Phatisa Group will acquire Java House, Kenya’s leading coffee and casual dining chain, from Actis, a London-based private equity firm.

Mauritius-based Alterra will hold the majority stake in the transaction, whose value remains undisclosed.

Java House, founded in Nairobi in 1999 by American entrepreneurs Kevin Ashley and John Wagner, operates 73 outlets across Kenya, Uganda, and Rwanda. The chain is part of the Java House Group. It also includes fast-casual brands Kukito, Planet Yogurt, and 360 Degrees Artisan Pizza, along with food manufacturer Foodscape.

The acquisition marks the fourth ownership change for Java House in just over a decade. Emerging Capital Partners purchased a 90% stake in 2012 before selling it to the now-defunct Abraaj Group in a deal worth over $100m. Actis acquired Java House in 2019 after Abraaj’s liquidation and has been looking to exit since late 2023. In addition, it even considering an IPO as a potential strategy.

According to a COMESA Competition Commission notice, the transaction allows Actis to realise its investment while empowering Alterra and Phatisa to promote Java House’s business growth. Both firms emphasised that the acquisition will not reduce market competition, given the lack of overlap with their existing operations.

This acquisition further reflects the increasing interest of private equity firms in the growing African consumer market. It also highlights Java House’s potential as a leading regional player in the coffee and casual dining sector.

Source: Yahoo Finance

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