Bulls n Bears Entrepreneurship Zone - 18 September 2019 :: Africa Deal Roundup: 15 noteworthy deals and announcements in August

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A selection of African private equity deal, fundraising and exit announcements that came across our desk in August 2019.

 

DEALS

 

The Carlyle Group, a global investment firm with $223 billion of assets under management, has acquired a majority stake in IsoMetrix, a South African-headquartered environmental, health and safety (EHS) software vendor, through its $698 million Carlyle Africa (Buyout) Fund. This investment will equip IsoMetrix for further growth, enabling the company to compete more aggressively for outright leadership within the EHS and integrated risk management software arena through accelerated software development.

 

West Africa’s largest clothing manufacturer, DTRT Apparel Ltd, announced a major investment from Verod Capital Management and Red Bull GmbH, in a transformative deal for the West African apparel industry. DTRT supplies cost-competitive products to major US and EU-based brands via a global network spanning three continents. Red Bull will be an anchor customer for DTRT, and DTRT will be a part of Red Bull’s global apparel sourcing operations.

 

DOB Equity, a Dutch family-backed impact investor in East Africa, and the Global Innovation Fund, in partnership with Unilever, have co-invested in Mr Green Africa, a Nairobi based recycler and recycled plastics supplier. Mr Green Africa recycles and sells ethically sourced materials with a traceable social and environmental impact.

 

 

Following the delisting of Torre Industries Limited from the Johannesburg Stock Exchange in April 2019, the business was successfully separated into two autonomous entities. Torre Analytical Services (TAS) was acquired by Ethos Mid Market Fund I and Torre Industrial (TI) by Apex Partners. TAS has now been rebranded as the Synerlytic Group. Edward Pitsi, managing partner of Ethos Mid Market Fund I, said: “We identified an exciting opportunity to separate TAS and TI through the Torre delisting, as the two businesses had little to no synergies as a group.”

 

AgDevCo has made a €8.7 million investment into the DekelOil group, an agribusiness operating in the palm oil and cashew sectors in West Africa. AgDevCo’s investment consists of a 10-year senior secured loan of €7.2 million to DekelOil Côte d’Ivoire, and a €1.5 million equity investment into its AIM-listed parent company DekelOil Public, for a 9.7% shareholding.

 

Nomanini, a fintech platform for the informal retail ecosystem, has announced a $4 million funding round led by Standard Bank, Africa’s largest bank, and completed by Goodwell Investments, an Amsterdam-based investment firm focused on fintech and financial inclusion. Through the terms of the strategic investment, Standard Bank gains a stake in the company and the ability to use Nomanini’s platform to unearth previously ‘invisible’ data on the informal retail economy.

 

FUNDRAISING

 

 

Private equity firm Alta Semper is looking to raise $250 million for its Alta Semper Ilera Fund I, L.P., a 10-year fund. This was revealed in a recent investment disclosure filing by the IFC, which is considering an investment of up to $15.5 million. The fund will obtain controlling stakes in leading healthcare and consumer companies by way of equity investments. It will have a pan-African focus and make equity investments of between $10 million and $50 million per transaction.

 

South African-based 27four Investment Managers has signed a deal that will see the National Treasury’s Jobs Fund contribute R200 million ($13 million) to 27four’s Black Business Growth Fund. The fund’s mandate is to create jobs through providing funding to black private equity fund managers focussed on investing in mid-market, privately-owned companies for growth. 27four has in-turn committed to raising more than R1 billion ($65 million) in matched funding.

 

Actis has completed fundraising for its first Actis Long Life Infrastructure Fund (ALLIF). The ALLIF fund was raised by Actis’ in-house teams and represents over $1.23 billion of fund commitments plus co-investment, delivering up to approximately $2 billion of investable capital for this new strategy. ALLIF will originate operating infrastructure assets across Latin America, Africa and Asia while driving operational improvements over a long term hold period.

 

PAPE Fund Managers’ PAPE Fund III has achieved final closing with total capital commitments of R950 million (about $62.2 million). PAPE Fund III is a generalist private equity fund investing in unlisted, mid-cap SME investments operating predominantly in South Africa. The fund will consider investment opportunities across several sectors, with specific focus on manufacturing, telecommunications, infrastructure, logistics, food security, tourism and leisure and medical sectors.

 

Global consultancy Palladium has revealed its first impact investment fund to bridge the financing gap for small businesses in sub-Saharan Africa. The Palladium Impact Fund I is expected to raise $40 million to provide much-needed capital for SMEs in emerging markets. The fund, which will focus on agribusiness value chains and off-grid clean energy in Nigeria, Ghana and Kenya, aims to alleviate poverty and economically empower over 500,000 rural households.

 

EXITS

 

Helios Investment Partners has partially exited from Fawry, the leading electronic payments platform in Egypt. This exit was achieved through a heavily oversubscribed initial public offering on the Egyptian Stock Exchange. Founded in 2008, Fawry offers financial services to consumers and businesses by providing a convenient and reliable way to pay bills and purchase goods and services.

 

 

The Silk Invest African Food Fund, managed by UK-headquartered Silk Invest, partially exited its stake in Nigerian company Sundry Foods Limited, following an investment from Norfund. Sundry Foods is an integrated food services company operating in the quick-service restaurant (QSR), bakery and catering services sectors. Its brands include Kilimanjaro, Pizza Jungle, Kilishawarma, Nibbles, Suncrust and Sundry Foods Services.

 

Nairobi-based Centum Investment Company PLC has concluded an agreement to sell all its shareholding in King Beverage Limited to Danish Brewing Company E.A Limited. Centum held 100% of the issued shares of King Beverage Limited, which is in the business of sale and distribution of various alcoholic beverages. The company is the sole distributor for Carlsberg Brands and selected Edrington and Grays spirits in Kenya.

 

Match Group, the parent company of dating app Tinder has acquired Cairo-based Harmonica, an app which approaches mobile matchmaking with respect for local traditions and cultures. In total, a team of 12 full-time employees is joining Match Group to help it serve the Muslim demographic globally. With Match Group’s acquisition deal, Harmonica’s early investors Flat6Labs and 500 Startups, had realised full exit on their investments.—Howwemadetinafrica 

 

Invest Wisely!

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