EGYPT - Africa-focused private equity firm Helios Investment Partners has announced a US$40 million investment deal to acquire a 49% stake in Egypt's leading frozen food manufacturer, Raya Foods. 

The agreement, which includes an additional US$14 million capital boost through new share issuance and a US$9 million convertible loan, is expected to close in the first quarter of 2025.

The investment will support Raya Foods’ plans to expand internationally and build a new freeze-dried food processing facility in Sadat City, northwest of Cairo. 

This facility, spanning 25,000 square meters, will help increase production and diversify the company’s export portfolio by enabling the production of freeze-dried fruits and vegetables, meeting the rising global demand for sustainable and healthy products.

Raya Foods, a subsidiary of Raya Holding for Financial Investments, currently exports to more than 50 countries, primarily in the European Union, where Egypt’s tariff-free trade agreement bolsters the company's competitive position. 

With the new investment, the company is set to expand its reach into additional markets, including Saudi Arabia.

Strategic expansion and product diversification

Raya Foods CEO Omar Abdelaziz emphasized that the investment would accelerate the company’s expansion and boost its manufacturing capabilities. 

“This investment will accelerate our growth and expand our global operations, significantly enhancing our competitiveness,” Abdelaziz said. He noted that the new freeze-dried facility aligns with Raya Foods’ strategy to capitalize on the global shift toward healthy, sustainable food products.

Helios Investment Partners’ Head of Consumer and Healthcare, Raed Barkatis, expressed optimism about the deal’s potential for growth. 

“We strongly believe in the food sector, especially with the increasing global trend towards healthy foods. We are confident that this partnership will contribute to advancing agricultural development and enhancing food security,” he said.

Positioning for leadership in Egypt’s export market

With an annual production capacity of 50,000 tons, Raya Foods is currently Egypt's second-largest exporter of frozen fruits and vegetables. 

The company aims to become the country's leading exporter by leveraging the partnership with Helios to scale production and increase its market share in the frozen and freeze-dried segments. 

As demand for sustainable and health-conscious food options continues to rise globally, the collaboration positions Raya Foods to strengthen its footprint in high-demand markets across Europe, the U.S., and the Middle East.