Two Africa-focused private equity companies, Alterra Capital and Phatisa Group, have agreed to buy Java House, a Kenyan coffee chain, from London-based private equity firm Actis for an undisclosed amount. 

According to a notice from the Malawi-based COMESA Competition Commission, Mauritius-based Alterra will hold a majority stake in the chain. 

The deal marks the fourth ownership change for the coffee chain and casual dining group Java House since 2012. 

Actis, which has been part of US investment firm General Atlantic since October 2024, has been seeking to divest Java House since September 2023, considering options including a potential initial public offering, according to media reports.  

Java House was established in Nairobi in 1999 by American entrepreneurs Kevin Ashley and John Wagner.  

It has since expanded to operate 73 stores across Kenya, Uganda and Rwanda.  

It is a part of the Java House Group, which operates food manufacturer Foodscape and fast-casual brands such as Kukito, planetyogurt and 360 Degrees Artisan Pizza. 

The history of investment in Java House includes a 90% stake purchase by Emerging Capital Partners in 2012 from the founders of the coffee chain.  

The now-defunct Dubai-based private equity firm Abraaj Group took over the chain in a transaction exceeding $100m before Actis stepped in following Abraaj's liquidation in 2019. 

The statement in the COMESA notice reads: “The parties submitted that the Proposed Transaction would enable the Seller to exit and realise its investment and will enable Alterra and Phatisa to acquire controlling stakes in the Target and promote [the] growth of its business.” 

Alterra and Phatisa have stated that their acquisition will not lead to reduced competition as there are no overlaps between their existing operations.