Corporate News

Dr. Mahmoud Khattab, Chairman and CEO of B.TECH: “We are pleased to announce this strategic partnership that we view as an added value to our company and to our expansion plans inside and outside Egypt. Development Partners International has a proven track record of successful and distinctive investments in Africa and we aim to achieve the most benefit of our partnership with them.” Cairo in July 2016 B.TECH; Egypt’s largest retailer and distributor of home appliances and consumer electronics, announced that the company has finalized a partnership agreement with Development Partners International, DPI - a British private equity firm that operates in Africa and manages a portfolio of USD 1.1 billion. The agreement will see DPI invest EGP 300 million in B.TECH to fund its growth strategy in a transaction that is considered DPI’s first venture in the Egyptian market. Dr. Mahmoud Khattab, Chairman & CEO of B.TECH, expressed his happiness over the successful conclusion of this partnership which he praised highlighting that “DPI has a proven track record of successful and distinctive investments in Africa with a network and exposure in sectors and markets that are poised to add significant value to B.TECH’s growth plans”. “We are also quite pleased that we were able to attract DPI to the Egyptian market and we’re looking forward to this cooperation that would provide B.TECH with the support and drive the company needs to achieve and accelerate its expansion plans in Egypt and abroad”. Dr. Mahmoud Khattab added, “B.TECH will utilise DPI’s EGP 300 million investment in the expansion of its branch to cover the entirety of Egypt. This is in addition to the enhancement of our infrastructure in order to accommodate the growth we’re planning to achieve in the next five years”. Dr. Khattab also expressed his appreciation to B.TECH’s team of financial and legal advisors who exerted a lot of effort in seeing this partnership come through. EFG Hermes acted as the financial advisor on the transaction; Zulficar & Partners and White & Case acted as legal advisors. Runa Alam, CEO and co-founder of DPI, commented: “Our investment thesis is to back strong companies which serve the developing needs of the emerging middle class across Africa. B.TECH is our first investment in Egypt and has a proven track record in serving the needs of the emerging and established middle classes. We believe the shift from traditional towards organised retail and the increasing formation of new households will support increasing consumption of durables and open new markets and channels for the business.” Adding to this, DPI deal partner Sofiane Lahmar said: “B.TECH has a strong track record of growth and profitability, an excellent management team, and a clear long term strategy. We are excited to partner with Dr. Khattab and his team and look forward to working together with B.TECH to continue the company’s growth story in Egypt and expand outside of Egypt in other African countries”. B.TECH has a fast expanding network of 67 branches across 22 governorates in Egypt, as well as 362 wholesale distributors; three main warehouses; and over 57 after-sales service centers. B.TECH distributes leading household appliances and consumer electronics products including leading global and regional brands such as: Indesit, Ariston, Miele, Apple, Braun, Babyliss, and Crafft; in addition to local brands Toscana and Ultra. It is also worth mentioning that one of B.TECH’s key success factors is the leading installments system which B.TECH pioneered in the Egyptian market. To date the system has served more than 700,000 Egyptian consumers. B.TECH’s dominant position in the Egyptian home appliances and consumer electronics market is supported by the installments system; growing internet presence; strong logistics and warehousing infrastructure; as well as advanced after-sales services among other services and advantages B.TECH offers its customers nationwide.