Information on the target
CHO Group is a fully-integrated producer and global exporter of olive oil, recognized as the largest operator in North Africa. Founded in 1996 as an olive oil bulk trader with a single crushing mill, the company has evolved into one of the largest 'farm-to-fork' operations in the sector globally, utilizing sustainable farming methods. During its partnership with Gulf Capital, CHO Group significantly expanded its production facilities and enhanced its local and global footprint through strategic acquisitions and backward vertical integration.
Under Gulf Capital's stewardship, CHO Group achieved remarkable growth, increasing its revenues by approximately 33% and doubling the number of countries to which it exports, now reaching a record 50 countries across North America, Europe, Asia, and Africa. The company has maintained double-digit EBITDA margins while demonstrating a strong commitment to societal and environmental sustainability, supporting local farmers and promoting sustainable farming practices.
Industry overview in the target’s specific country
The olive oil industry in Tunisia is characterized by its rich agricultural heritage and favorable climatic conditions, making it one of the leading producers of high-quality olive oil globally. The sector has witnessed significant growth due to increasing global demand for healthy and organic food products, with olive oil being recognized for its health benefits. Tunisia's strategic location also facilitates access to key export markets in Europe and North America, enhancing its competitiveness in the global olive oil market.
In recent years, the Tunisian government has implemented various initiatives to support the agricultural sector, including investments in modern farming techniques and sustainable practices. These efforts aim to boost productivity and ensure the long-term viability of the industry. Additionally, the growing trend towards sustainability and organic farming has positioned Tunisia favorably in the global market, attracting investments and partnerships focused on sustainable agriculture.
Despite facing challenges such as competition from other olive oil-producing countries and inflationary pressures on raw materials, the Tunisian olive oil industry remains resilient. The increasing focus on quality, sustainability, and innovation has enabled local producers to differentiate themselves and capture a larger share of the global market. As consumer preferences shift towards healthier and sustainably sourced products, the outlook for the Tunisian olive oil sector remains positive.
The rationale behind the deal The exit from CHO Group aligns with Gulf Capital's strategic focus on food security and sustainability, particularly in the Middle East and Southeast Asia. The investment in CHO Group was driven by the company's market leadership in Tun…