Private Equity firm Medu Capital is tapping its R.1 billion Medu III fund to acquire outright ownership of two South African companies, Universal Paints and Elite Truck Hire, in deals worth a combined total of R450 million, (approximately $29.5 million). Additional terms of the deal were not disclosed.
Both companies are well-established, having been in business for a number of years. Universal Paints manufactures decorative paints and coatings for the homeowner, professional painter and construction firm markets at 16 dedicated factory outlets in Gauteng. Elite Truck Hire, with its two associated businesses Elite Line Haul and Elite Forklift Rental, provides its more than 150 customers with a range of short and long-term truck hire services, forklift truck rentals, maintenance leasing services and long haul transportation services. The company operates out of 4 offices and manages a fleet of over 1200 vehicles.
“Both Elite and Universal deliver high quality products and services to its customers and have experienced and successful management teams,” said Paul Moeketsi, an Associate at Medu Capital. “In the case of Elite, we have increased our initial 27% stake acquired in 2007 to 100%, which we believe sends a clear signal of our confidence in the company and its management.”
As part of the deal, Medu has appointed a new, as yet unnamed, Managing Director for each firm, both of whom are investing alongside Medu Capital in the deals. As part of Medu’s value-building strategy, executive management teams invest alongside investors to align interests and partner with owner-managers to help grow and develop portfolio companies.