(Ecofin Agency) - British investment firm Helios continues to expand its commitment to the food sector in North Africa. It is seeking a substantial minority stake in Egypt's second-largest exporter of frozen products.

Helios Investment Partners, an Africa-focused private equity firm managing over $3 billion in assets, has offered to acquire a 49% stake in Raya Foods, Egypt’s second-largest exporter of frozen fruits and vegetables. The proposed deal is valued at around $40 million.

According to the announcement made on October 20 by Raya Foods' parent company, Helios aims to buy a set of shares from Raya Holding for Financial Investments, the sole shareholder of Raya Foods. In addition to the equity purchase, the deal includes a capital increase of $14 million through the issuance of new shares. Helios will also provide a $9 million convertible mezzanine loan to Raya Holding.

The funds raised will support Raya Foods' international growth plans. The company currently exports to over 50 countries, with a strong focus on European and American markets. It plans to expand into new regions, including Saudi Arabia. Raya Foods also aims to boost its frozen food export capabilities by building a new freeze-dried food processing plant in Sadat City. This facility will diversify its export portfolio, increase production capacity, and enhance its exports.

“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,” said Ahmed Khalil, CEO of Raya Holding.

In a June 2024 report on global food trends, the UN’s Food and Agriculture Organization (FAO) estimated that global spending on food imports in 2024 would exceed $2 trillion.

The deal between Helios and Raya Holding is expected to be finalized in the first quarter of 2025. Raya Holding was advised on the legal aspects of the transaction by the American law firm Baker McKenzie, while Moroccan bank Attijariwafa Bank acted as its financial advisor.

This investment comes just a month after Helios invested around $102 million in M2P Fintech, an Indian banking infrastructure provider. The funding aimed to strengthen M2P’s presence in Asia and expand its international reach, particularly in Africa.

Helios is looking beyond Raya. The investment firm, which has offices in Kenya and Nigeria, is exploring additional opportunities in Egypt’s consumer, healthcare, and fintech sectors. Helios could invest up to $250 million in these areas over the coming years, according to local media reports.