Development Partners International (“DPI”), one of the leading private equity firms in Africa, has announced investment through its second fund, African Development Partners II (“ADP II”), in the Compagnie Marocaine de Goutte à Goutte and de Pompage (CMGP), leader of the Moroccan market of irrigation systems and solutions.
DPI has acquired a majority stake in CMGP from existing shareholders, the founding family Moamah and the Amethis Maghreb Fund I. This IPR investment will represent the largest private equity transaction made in Morocco in 2018.
Founded in 1995, CMGP is the leader of the Moroccan irrigation market and has experienced strong
growth since its inception, posting a turnover of more than US $ 70 million. The company covers distribution and integration activities of irrigation and micro-irrigation equipment, and offers a full range of products mainly to the agricultural and infrastructure sector. Faced with constraints in water resources, CMGP offers its customers the best irrigation solutions that maximize agricultural yields and food production while minimizing water consumption.
In collaboration with DPI, CMGP will aim to continue to diversify its product range and expand its geographical footprint in Africa.
Sofiane Lahmar, Partner at DPI, said, “We are delighted to partner with CMGP, its CEO and founder, Mr. Youssef Moamah, and his strong management team to support and accelerate the group’s growth in Morocco as well. than in sub-Saharan Africa. More than two-thirds of the surface of Morocco is considered agricultural land by the World Bank but a small percentage currently benefits from irrigation systems. CMGP is perfectly positioned to develop and deliver these essential solutions for the agricultural sector. In addition, there is considerable potential for irrigation growth on the African continent and we expect to collaborate closely with CMGP management on a number of strategic initiatives in this area. ”
Runa Alam, CEO and co-founder of DPI, said: “The IPR investment in CMGP will mark our second investment in Morocco through our ADP II fund, strengthening our presence in the French-speaking region of Africa which we consider a geographical area of prime importance. The transaction is in line with our strategy of geographic and sector diversification, which consists of finding quality assets and partners in countries that complement our investment portfolio. ”
Youssef Moamah, CEO and Founder of CMGP, said, “Our company has experienced strong growth over the last two decades. We believe that the partnership with DPI, one of the leading private equity investors in Africa, will allow us to continue our strong organic growth in Morocco and expand our presence in new markets in Africa.
We particularly appreciate the proven experience of DPI in partnering with family businesses and its deep knowledge of the Moroccan and African markets. ”
Naciri & Associates Allen & Overy and PwC acted as DPI’s counsel in this transaction.
