ETHOS TAKE PRIVATE DEAL FINALISED
Ethos Private Equity has completed its deal to acquire 100% of South-Africa based industrials distribution company Torre Industries. The company will be delisted from the Johannesburg Stock Exchange following the deal.
The investor is acquiring the company through a private investment in public equity (PIPE) deal, partnering with Apex Partners, a South-Africa based investor. The consortium is investing through a special purpose vehicle (SPV) Main Street 1641.
Ethos and Apex are buying their stakes from existing shareholders, including Stellar Capital Partners which owns 57.07% of Torre Industries.
Unknown investors are selling their 25.18% stake through Newshelf 1400, an investment vehicle.
The remaining shares are being sold by undisclosed holders.
Ethos structured the deal through its Ethos Mid Market Fund I. The vehicle had its final close in 2018, raising approximately $200 million (R2.5 billion).
Stellar Capital Partners, based in South Africa, first backed the company in 2015.
Following the delisting, the company will be split into two units – Torre Analytical Services and Torre Industrial.
Torre Analytical Services will offer machine condition monitoring and testing services.
On the other hand, Torre Industrial will focus on the distribution of industrial equipment such as forklifts, tractors and graders.
Arshad Essa is partner of the Ethos Mid Market Fund I.
Headquartered in Johannesburg, Torre distributes industrial equipment dedicated to agricultural, automotive, construction, earthmoving, engineering, mining and manufacturing industries.
The company operates across Zambia, South Africa, Swaziland, Zimbabwe, Mauritius, Mozambique, Namibia, Ghana, Lesotho, Botswana and the Democratic Republic of the Congo in Africa.
Torre also operates in the United Arab Emirates and India.
Created in 2012, the company is headed by chief executive officer Jon Hillary and employs 1261 people, as of 2018.
The company had revenues of approximately $103.7 million (R1.5 billion) for the year ended June 2018.
Earnings before interest, tax, depreciation and amortisation (EBITDA), for the period stood at R76 million.
Webber Wentzel was legal advisor to the investors on this transaction.
Apex Partners was financial advisor to the investors.
Questco was sponsor and corporate advisor to Torre on this transaction.
