Java House, the largest coffee chain in East Africa, is again changing ownership. London-based private equity firm Actis is selling the business to two Africa-focused investment firms: Alterra Capital and Phatisa Group. This marks the fourth sale of the coffee chain in just 12 years, reflecting its enduring buy value that still appeals to investors. Since 2023, Actis has reportedly been looking for buyers for Java House and several suitors—like Mauritius PE firm Adenia Partners—have long circled around with offers.
The sale finally went to Alterra and Phatisa for an undisclosed amount, with the deal expected to be finalised by the end of January 2025. Alterra will hold the majority stake, while Phatisa will take a smaller share but maintain control rights.
Java House, which began as a single coffee shop in Nairobi in 1999, has grown to over 80 branches across Kenya, Uganda, and Rwanda. The group also operates other well-known brands, including Planet Yogurt and 360 Degrees Pizza. Multiple ownership changes have shaped its journey. Emerging Capital Partners acquired the chain in 2012 and fueled its expansion: it expanded into Uganda in 2014. The following year, there were talks to expand the business to Nigeria, but this didn’t work out.
In 2017, Dubai-based Abraaj Group acquired it in a deal reportedly worth over $100 million. After Abraaj’s financial collapse, Actis took over in 2019—at a time when Actis was actively buying African businesses in growth markets like retail, telecoms, education, and renewable energy.
Actis has raised $25 billion since its inception. It raises money from family offices, development financial institutions (DFIs), sovereign wealth funds, endowments, and pension funds to invest in these growth markets. To date, Actis has invested in 40 ventures and exited 34. The Java House exit is another day in business for the PE firm.
Yet, the sale to Alterra and Phatisa presents a new chapter for the coffee business. Both firms are committed to scaling African businesses, with Alterra focusing on sectors like food and hospitality and Phatisa specialising in the food value chain. Their partnership could breathe fresh life into Java House’s operations and expand its market presence.
As Java House transitions to new hands, its legacy as a pioneer in East Africa’s coffee culture remains intact. The deal could pave the way for further growth, securing its status as a household name in the region.
