Information on the Target

Dislog Group, founded in 2005, operates as a leading diversified Moroccan industrial company primarily in the Fast-Moving Consumer Goods (FMCG) sector. The company has recently diversified its portfolio to include ventures in the pharmaceutical industry and blow molding through its subsidiary, CMB Plastique. Dislog Group effectively manages production and marketing across three high-growth sectors: hygiene, food, and health.

Over the past 15 years, Dislog Group has established itself as a market leader, employing approximately 3,400 individuals and offering a robust portfolio of hundreds of brands. The company is recognized for its commitment to brand development and for operating as a 'Full-Service Provider,' which encompasses the entire value chain from production through to consumer delivery. For more information, visit dislogroup.com.

Industry Overview in Morocco

The FMCG sector in Morocco is experiencing rapid growth, driven by increased consumer purchasing power and changing demographic trends. This industry is characterized by a high level of competition, with numerous established players and new entrants vying for market share. Additionally, evolving consumer preferences towards quality and sustainability are reshaping market dynamics.

In recent years, the pharmaceutical sector in Morocco has also garnered attention, owing to heightened demand for healthcare products and innovations in medical treatments. The government's support of the pharmaceutical industry aligns with Morocco's broader aspirations to become a regional health hub.

Furthermore, with a growing emphasis on hygiene and health, particularly in light of recent global health challenges, companies like Dislog Group are well-positioned to leverage their existing capabilities to meet rising consumer demand. The expansion into organic and healthy food products reflects an adaptive approach to shifting market trends.

Given the strong economic indicators and favorable regulatory environment, the Moroccan FMCG and pharmaceutical industries are poised for sustained growth, providing ample opportunities for local firms to expand both domestically and internationally.

The Rationale Behind the Deal

SPE Capital’s recent investment of MAD 350 million in Dislog Group, complemented by an additional MAD 100 million from an international partner, aims to facilitate the growth and development goals of Dislog Group. This strategic equity investment is intended to bolster the company’s operational capabilities and support its diverse expansion plans, including an anticipated initial public offering (IPO) on the Casablanca Stock Exchange within the next 2 to 3 years.

The collaboration between SPE Capital and Dislog Group reflects an alignment of interests and mutual confidence in each other’s potential for growth. By reinforcing Dislog Group’s governance and resource base, the investment seeks to enhance the company’s competitive position in the Moroccan market and beyond.

Information About the Investor

SPE Capital, established in 2016, is an independent private equity firm focused on investing in high-growth companies across Africa and the Middle East. The firm is equipped with a robust team of investment professionals with extensive local insights and a proven record of developing businesses in the region.

With offices across Africa and the Middle East, SPE Capital is dedicated to implementing best practices in governance and leveraging its local expertise to maximize investment impact. The firm has also committed to the Operating Principles for Impact Management, reflecting its commitment to integrating social and environmental factors into its investment processes. For additional information, visit www.spe-capital.com.

View of Dealert

This investment by SPE Capital in Dislog Group presents a compelling opportunity within the fast-growing FMCG and pharmaceutical sectors in Morocco. The strategic focus on growth through diversification and brand positioning indicates a sound investment rationale, particularly with Dislog Group's strong market positioning and established industry presence.

The potential for an IPO within a few years adds a layer of excitement to this deal, which could unlock significant value for both SPE Capital and Dislog Group. Moreover, the convergence of SPE Capital's investment strategies with Dislog Group’s long-term vision marks a collaborative effort that could yield fruitful outcomes.

Importantly, the collaboration with Dislog's management team, who have a proven track record, further enhances the confidence in the future success of this investment. The involvement of experienced advisors underscores a commitment to maintaining compliance with international standards and governance practices, essential for managing investor expectations.

In summary, this investment is poised to be a rewarding endeavor for SPE Capital, reflecting a strategic alignment with the robust growth potential inherent in the Moroccan FMCG and pharmaceutical markets.

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