Spear Capital Acquires a Stake Zimbabwe's Second Largest Dairy Company

SPEAR Capital (Pty) Ltd ("SPEAR Capital"), has acquired a 27% stake in Dendairy (Private) Limited ("Dendairy"), Zimbabwe's second largest dairy producer, in a combined debt and equity transaction valued at US$6 million, SPEAR Capital has announced.

SPEAR Capital partner Christian Victor Bernau was quoted as saying, "Dendairy's unique footprint in Zimbabwe, is well positioned for growth in Zimbabwe and we are targeting export markets within the region. There is growing demand for dairy products and the improvement in the political and economic environment are reasons that will provide numerous scalable growth opportunities for Dendairy."

Dendairy has invested heavily in its factory and grown its raw milk supply since its establishment in 2004, the company has continued to experience exceptional market penetration and growth within the Zimbabwean market, and has recently expanded its footprint to include Mozambique and Zambia. Dendairy currently produces Maas (fermented milk), UHT Milk, UHT Flavored Milk, Yogurts, Ice Cream, and Fruit Juices.

"As a firm that invests in exceptional managerial talent in growth sector industries, Dendairy optimizes the types of opportunities SPEAR Capital strives to unearth." Mr. Christian Victor Bernau, went on to add. SPEAR Capital's stake could rise to 30% if built in performance measures are met, while this investment marks SPEAR Capital's second investment in the Zimbabwe market in the last 12 months.

Dendairy started from humble beginnings in 2004 when two dairy farmers setup a small Maas processing plant in Kwekwe. The product range has expanded over the years to include Ice Cream, Long life Tetra-pak boxes, Sacheted milk, Fruit Juices, Yogurt and commercial ingredients. Dendairy has become the number 1 or 2 player in each product category within 18 months of launching a new product. Dendairy has grown top line earnings at a rate >30% per year compounded for the last 6 years. Dendairy is in a strong position to benefit from increased dairy consumption per capita in Zimbabwe. For more information visit: