Nisela Capital, an asset management, private equity and advisory firm located in South Africa, has acquired Genrec Engineering from JSE-listed Murray and Roberts Holdings in a R185 million, (approximately $13.3 million) deal. The transaction is subject to conditional and regulatory approvals.
Genrec, which provides steel structure fabrication and machining services to its clients, was started in 1953 and has grown to be one of South Africa’s largest engineering manufacturers, listing on the Johannesburg Stock Exchange in 1974. The company was subsequently delisted in 1992 once Murray and Roberts acquired 100% of its outstanding shares.
The deal was led by Richard Ngwenya, Nisela Capital’s Managing Director who will act as Deputy Chairman on Genrec’s board. Brian Makola has also been appointed to the board as an Executive Director.
Nisela Capital invests off its own balance sheet, targeting growth capital opportunities in established businesses generating between R50 million and R200 million in EBITDA. In an emailed response, Richard Ngwenya told Africa Capital Digest that, typically, Nisela Capital executes transactions around R300 million in value.
White and Case acted as legal counsel for Nisela Capital, while Murray and Roberts were advised by Webber Wentzel. Deutsche Securities acted as Murray and Roberts financial advisor on the transaction.