Private equity fund Ascent gets minority share in Dune Packaging

Dune Packaging. [File, Standard]

Dune Packaging Ltd has announced a minority equity investment in its business by Ascent Rift Valley Fund II ("Ascent"), a small-medium enterprise (SME) private equity fund in the region.

The packaging solution provider has described the investment by Ascent Rift Valley Fund II as a significant milestone in the industry which underscores the confidence of investors in the sector and the region's economic potential.

With the new investment, Ascent Rift Valley Fund II aims to support Dune Packaging's innovation and expansion into new markets as well as its already robust environmental, social and governance credentials and the enhancement of its operational capabilities.

The infusion of capital will enable Dune Packaging to accelerate its organic and non-organic growth trajectory - solidifying its position as a market leader in the packaging sector across East Africa. The transaction was led and managed by Tradeways, the advisory boutique with a focus on the Middle East and Sub-Saharan Africa.

Bowmans, with a team led by Paras Shah and Vruti Shah, were the legal advisors to Dune Packaging, whilst DLA Piper Africa, Kenya (IKM Advocates), led by David Lekerai and Deborah Sese, supported Ascent by conducting due diligence, drafting, and negotiating the investment documents and managing the completion process.

Tradeways, together with Bowmans, played a critical role in advising the shareholders of Dune Packaging and the company itself from initial strategic thinking, preparation, negotiation, and transaction execution.

This expertise and support were instrumental in ensuring a smooth and successful outcome for all parties involved. On its part and in addition to DLA Piper Africa, Ascent was also advised by Deloitte and Viva Africa Consulting LLP. "We welcome Ascent Capital Management Africa II as our strategic partner and investor," said the Chief Executive of Dune Packaging Rohin Chandaria.

He said the firm was comfortable with Ascent given their understanding of the terrain and their credentials of working alongside family businesses to unlock value. Vinod Bussawah, a director at Ascent Capital Management Africa II Ltd said the investment seeks to drive value creation and capitalise on opportunities in the East African market. Managing Director of Tradeways Uday Bhasin said executing transactions of this nature has their inherent challenges.

Dune Packaging is also the sole shareholder of Tiger Packaging Ltd, which is engaged in the production of polypropylene woven sacks.