Ethos Private Equity is 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, earth moving, engineering, mining and manufacturing industries.
  • The company operates across Zambia, South Africa, Swaziland, Zimbabwe, Mauritius, Mozambique, Namibia, Ghana, Lesotho, Botswana and 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.