Transaction overview
SEAF, a global impact private equity firm in partnership with USAID, ABCapital, and DFC, closed an investment in Orient Tea (TN) on July 13, 2023. Orient Tea is a women-led food company that produces natural instant tea products under the brand Kyufi. Founded in 2013, the company operates out of Ben Arous, Tunisia, and has been expanding its reach into export markets by leveraging digital marketing strategies and enhancing warehousing capacity to address supply chain disruptions caused by the pandemic.
Deal structure and financing
The exact deal value and stake acquired were not disclosed; however, the investment was made through SEAF’s Tunisia Resilience Fund and the SEAF Covid-19 Global Gender Lens Emergency Loan Finance. ABCapital acted as a buy-side advisor for this transaction. Financing details remain undisclosed, but the primary objective of the fund is to support small and medium-sized enterprises (SMEs) impacted by COVID-19 and to promote gender-inclusive economic growth.
Strategic context
SEAF’s investment in Orient Tea aligns with its mission to drive sustainable business practices and inclusive growth within emerging markets. The deal aims to bolster Orient Tea's production capacity, digital marketing capabilities, and export market expansion efforts. By enhancing warehousing infrastructure, Orient Tea can better manage supply chain disruptions and reach new international consumers.
Orient Tea’s founder and CEO is dedicated to creating an agri-food business that supports women-led initiatives and provides sustainable training programs for smallholder farmers in its network. The company has seen significant growth despite challenges posed by the pandemic, with a majority of its workforce being women, both directly employed and through contracted farm workers. This investment will further these goals by providing capital needed to scale operations.
Regulatory path
The transaction did not require extensive regulatory scrutiny given that it falls under private equity funding rather than public acquisition or merger activity. The primary jurisdictions involved are Tunisia, the United States (through USAID and DFC), and potentially other international finance entities supporting development in emerging markets. No specific HSR/EU filings were mentioned, as this type of investment is typically exempt from such requirements due to its nature as private equity funding rather than a public M&A transaction.