Phatisa, the pan-African private equity firm, has agreed to buy JSE-listed Torre Industries’ remaining interest in Kanu Equipment. The transaction increases Phatisa’s shareholding to 85%, with the remaining balance being held by Kanu’s management. Pre-deal, Phatisa had a 40% interest, whilst the firm’s management team held a 5% stake. Financial terms of the deal were not disclosed.
The deal is being transacted through Phatisa’s $246 million African Agriculture Fund. The fund originally backed Kanu in June 2016, spending approximately $15 million to acquire a 40% stake in the pan-African agricultural and construction equipment distributor which has operations in Côte d’Ivoire, Ghana, Liberia, Sierra Leone, Cameroon and Botswana. Phatisa partner Joseph Bergin led both deals for Phatisa, with the assistance of Rinolan Moodley.
In the statement announcing the investment, Bergin welcomed the deal, saying “Today’s announcement reflects Phatisa’s confidence in both the business and the management team. Kanu’s success is attributed to its customer service excellence and a comprehensive product offering. We believe in management’s vision and support their growth objectives, both organically and through acquisitions in selected markets.’
Phatisa’s strategy is to leverage its sector expertise and network to support Kanu’s ongoing expansion plans. To date, the business has delivered strong year-on-year growth by attracting new customers to the firm’s internationally-recognized equipment brands and strong levels of customer service and support.
Bowmans served as legal advisors to Phatisa and Kanu on the transaction. Cliffe Dekker Hofmeyr acted for Torre industries.