Renowned coffee house Java is set to be sold to a Dubai-based private equity investor, The Abraaj Group.
Figures of the deal are yet to be disclosed but Abraaj Group Managing Partner and Global Head of Private Equity Mustafa Abdel-Wadood described the takeover as a calculated move to expand Java's well-known culture and products across East Africa and beyond.
Java was initially owned by Emerging Capital Partners (ECP) and is one of the most popular coffee houses in Kenya.
"This landmark transaction is a compelling opportunity to build on Java House's success story across sub-Saharan Africa to create a true regional champion.
"The rapidly expanding middle class and increasing urbanisation trend creates compelling investment opportunities in multiple sectors, and we believe Java House is ideally positioned to benefit from these trends," he said.
ECP Founding Partner and firm's Country leader Bryce Fort hailed the deal saying he and Java's founder Kevin Ashley had grown the business from one location to 13 across Kenya and into East Africa where they operate 60 outlets.
Java House Chief Executive Officer Ken Kuguru welcomed the new development saying it would give Kenyan trained baristas and chefs an opportunity to work elsewhere as the group expands the business across Africa.
Today, Java has an unrivalled regional footprint of 60 stores across 10 cities in Kenya, Uganda and Rwanda.
