Private equity firms Alterra Capital and Phatisa Group have agreed to acquire the Nairobi-based coffee and casual dining group from London-based Actis – marking the fourth ownership change for Java House since 2012
Java House’s Sarit Centre outlet in Nairobi, Kenya | Photo credit: Java House/Facebook
Kenyan coffee and casual dining group Java House is set to change hands for the fourth time in 12 years.
The chain’s current owner, London-based private equity firm Actis, has signed an agreement to sell Java House to Alterra Capital and Phatisa Group for an undisclosed sum, according to a notice by the Malawi-based COMESA Competition Commission. The sum of the transaction was not disclosed, but the filing did state that Mauritius-based Alterra will hold a majority stake.
Actis first expressed its intention to exit Java House in September 2023, with a potential IPO among the steps considered to entice a potential buyer.
Founded by US entrepreneurs Kevin Ashley and John Wagner, Java House opened its first store in Nairobi in 1999 and currently operates 73 stores across Kenya, Uganda and Rwanda. The coffee chain is part of the Java House Group, which also manages food manufacturer Foodscape alongside fast-casual brands Kukito, planetyogurt and 360 Degrees Artisan Pizza.
In 2012, Washington DC-based investment Emerging Capital Partners acquired a 90% stake in Java House from its founders before the now defunct Dubai-based private equity firm Abraaj Group purchased the group six years later in a deal reportedly worth over $100m.
Actis, part of US investment firm General Atlantic since October 2024, acquired Java House following the liquidation of Abraaj in 2019.
Founded in 2020, Alterra Capital’s investment portfolio primarily focuses on financial services and telecommunications companies. Phatisa Group has interests in Africa’s food value chain and counts Zambian protein brand Goldenlay, South African integrated foods firm Lona Group and FMCG beverage brand Continental Beverage Company among its investments. Java House will be the first coffee portfolio brand for both buyers.