Deal Summary
Imperium Holding (Imperium), a family-owned Moroccan company specialising in premium tea production and packaging solutions, has secured a €25 million ($26.5 million) equity investment from Proparco, the Danish Investment Fund for Developing Countries (IFU), and Si Advisers LLP (Si Advisers) in exchange for a 31% stake. Founded in 1979, Imperium has grown to become a market leader in innovative, eco-friendly tea packaging solutions through its flagship subsidiary, Société Impériale des Thés et Infusions (SITI). The investment will support plans to double production capacity, expand export reach (Imperium currently serves luxury tea brands across five continents), and enhance social impact and governance standards. The El Baroudi family, majority owners since the company’s inception, will retain their ownership stake and management roles, ensuring strategic continuity. The investment also marks a continuation of collaboration between the three fund managers, who partnered in 2021 to invest in Global Tea & Commodities (Global Tea), a
Deal Rationale
Imperium Holding, through its subsidiary SITI, has established itself as a leader in the African tea industry, exporting to 55 countries, with strong market penetration in North America, Europe, and Asia. These markets are experiencing rising demand for sustainable products, presenting significant growth potential for Imperium. The El Baroudi family’s leadership since 1979 has been pivotal in scaling the business from a single-client operation to a global exporter. Their continued involvement ensures long-term vision and stability, key factors for the investing fund managers.
Imperium’s strong social impact bolsters its attractiveness. The company employs over 1,200 people—90% of whom are women—and promotes gender inclusion at leadership levels, with non-family members holding key roles such as Chief Production Officer and Chief Quality Officer. These attributes align with the fund managers’ goals of strengthening governance standards and improving gender diversity in leadership. The investment is also projected to create an additional 933 jobs, reinforcing Imperium’s role in driving local economic development and inclusivity. For the fund managers, this investment offers a balanced opportunity for commercial returns and social impact. It supports Proparco's 2023-2027 strategy to build resilient economies and reduce inequality, aligns with IFU's focus on sustainable growth in emerging markets, and fits Si Advisers' emphasis on high-growth African opportunities. By enabling Imperium to double its production capacity and enhance environmental and governance standards, the investment promises both financial growth and measurable social benefits, making it a compelling addition to their portfolios.
- Market Opportunity: The global tea market is projected to grow at a CAGR of 5.72% from 2024 to 2029, driven by rising health consciousness and a growing preference for herbal and specialty teas among younger consumers, particularly Millennials and Gen Z. This shift, coupled with the increasing demand for sustainable packaging, positions Imperium Holding to capture significant market share. The tea packaging industry, valued at $6.5 billion in 2023, is expected to reach $9.32 billion by 2032, with sustainability as a key differentiator. Imperium’s flagship subsidiary, SITI, is uniquely positioned to capitalise on these trends with its eco-friendly and innovative packaging solutions, including stitched and biodegradable tea bags. As an exporter to 55 countries, SITI’s strong presence in North America, Europe, and Asia provides a robust platform for growth in high-demand markets. Its ability to integrate manual craftsmanship with automation allows it to deliver scalable, premium-quality products that meet evolving consumer preferences. By leveraging its existing market leadership and sustainable practices, Imperium is well-placed to thrive in an increasingly dynamic and competitive global tea landscape.
- Risk/Return Analysis: The investment in Imperium Holding benefits from the fund managers’ prior experience in the African tea sector, particularly their 2021 investment in Global Tea. While that deal focused on domestic output and smallholder farmer support, Imperium’s strategy complements it by targeting export growth and job creation. This shared expertise and established collaboration provide a solid foundation for success. Additionally, the El Baroudi family’s continued leadership ensures stability and strategic alignment, with a proven track record of scaling from a single-client operation to a global exporter. A key risk lies in export competition from global players like Tata Consumer Products and Ekaterra, which dominate in pricing efficiency and production volumes. Imperium’s niche focus on premium, sustainable tea packaging differentiates it, but competition from lower-cost producers in India and China presents challenges, particularly as these markets benefit from favourable production costs and logistics. Nonetheless, Imperium’s innovative practices and strong market position, supported by the fund managers’ expertise, create a solid potential for financial growth and social impact returns.
About the Fund Managers
Proparco is a development finance institution and the private sector financing arm of the French Development Agency (AFD). Focusing on sectors such as infrastructure, agriculture, and financial services, Proparco seeks to promote sustainable economic development in emerging markets. Its 2023–2027 strategy emphasises building resilient economies, reducing inequality, and addressing climate change. Recent African investments include a $200 million debt package for Ecobank and a $5 million equity investment in Nuru, an off-grid solar company in DRC. At the end of 2023, Proparco managed a global portfolio in excess of €7 billion ($7.4 billion) across more than 1,200 projects.
The Investment Fund for Developing Countries (IFU) is a Danish government-backed entity focused on promoting green and inclusive development in emerging markets. IFU invests across various sectors, including renewable energy, agribusiness, and healthcare, aiming to combine commercial returns with significant developmental impact. Managing approximately $33 billion across seven funds, IFU has set a target to invest $8 billion in Africa by 2030. The Fund typically takes a minority stake ranging from 10-30%, but can take up to 49% equity in small projects and companies.
Si Advisers LLP is a London-based private equity firm established in 2019, specialising in high-impact investments within African markets. The firm focuses on sectors such as agriculture, consumer goods, and healthcare, seeking opportunities that offer both substantial financial returns and positive social outcomes. The Fund made its maiden African investment in 2021, partnering with Proparco and the IFU to invest in Global Tea & Commodities (Global Tea), a UK headquartered tea, coffee, and macadamia business with operations in Kenya and Malawi.
