April 25, 2016

Africa-focused private equity firm 8 Miles, has made a strategic investment of an undisclosed amount in Ethiopian premium beef company, Verde Beef Processing in exchange for a significant minority stake in the business.

“This is an exciting opportunity to work with the highly experienced team at Verde Beef and introduce premium Ethiopian beef into the growing global beef market,” notes Doug Agble, Partner at 8 Miles about the investment.

Ethiopia claims the sixth largest cattle herd in the world, and Verde Beef currently owns and manages a 1,300 hectare feedlot and crop farming operation in Adami Tulu, where it fattens cattle and leverages Ethiopia’s ideal climate, central MENA location, and low domestic cost of inputs, as it begins exporting high-quality beef.

Founded in 2014 by Ethiopian venture firm, Verdant Frontiers, Verde Beef is led by two agribusiness managers – Bruce Hamilton and Arnold Krul, both residing in-country, according to the company’s website.

“The investment from 8 Miles will enable us to grow our business significantly and become a top beef processing company in Africa,” said Scott Friesen, CEO and co-founder of Verde Beef.

With the backing of this new investment Verde Beef is planning an impressive expansion including growing its current 6,000-head herd of cattle by more than ten-fold, and the construction of an abattoir and a meat processing facility by the close of 2017 in order to better meet growing protein demand from Middle East, Asian, and African markets.

Named for the shortest distance between Africa and Europe and founded by Bob Geldof, 8 Miles announced its first close in February 2012 with commitments of $200 million from cornerstone investors including the IFC, the African Development Bank, the UK government-owned development finance institution, CDC, and African private equity firm, Vital Capital.

Verde Beef is not the first investment in Ethiopia for 8 Miles. In February 2013 the firm acquired 100% interest in Awash Wine Share Company, which holds a monopoly on wine production in the country. With a fully integrated operation, Awash holds two wineries and a 520 hectare farm outside of Addis Ababa.