Ethos Private Equity is acquiring 65% of Eazi Group, a South African equipment sales and rental business in a $97 million transaction. The private equity investor is acquiring the stake from the firm’s founding management and Buffet Investments, an investment vehicle controlled by billionaire Jonathan Beare, both of whom are re-investing into the new structure alongside Ethos to hold the balance of the ownership.
As part of the deal, Ethos will take four seats on the Eazi board and will be represented by Shaun Zagnoev, the partner who led the transaction, Titi Sekhukhune who worked as the deal principal, Richard Fienberg and Joao Rodriguez, value-add Partner and Principal respectively, who worked on the transaction to identify optimization opportunities for the business.
“The Eazi Group is a prime example of South African pioneering spirit where visionary entrepreneurs identified a void in the market and through grit and determination established a new industry,” commented Zagnoev. “In a little over a decade, management built a differentiated business, offering service excellence, enhanced safety and innovative cost-effective solutions to their customers.”
The Eazi Group, which was founded in 2003 has expanded to be the largest provider of work-t-height and material handling solutions in Africa. It draws its clients from across a diverse range of sectors, including the construction, shipping, manufacturing, FMCG, transport, entertainment and mining industries, whom it services through a number of branches in South Africa and neighboring Namibia.
The deal marks the private equity investor’s eighth deal for its sixth fund, which has now deployed more than %0% of its committed capital. For this transaction, Ethos received financial due diligence services from Deloitte, commercial due diligence services from McKinsey & Co, valuation advisory services from Deutsche Bank, and legal services from Webber Wentzel.