Synergy Capital has made the fifth deal for its $100+ million private equity fund with an investment in Africa Terminals, a Terminal and Storage company offering services to local and international petroleum products companies across West Africa. Terms of the deal were not disclosed.
The capital will be used to acquire additional terminal and storage facilities in countries along the West African coast, including Nigeria, Ghana, Liberia and Senegal, a region which is experiencing acute shortages in storage capacity and which is expected to get worse as the impact of industry is deregulation is felt across the region.
Africa Terminal’s CEO, Tosin Odusanya noted that these factors “…will further boost the demand for storage, as more products are made available in markets across the region. Africa Terminals as a pure play storage company is an attractive choice for trading companies in the region and this enhances the forward prospects for Africa Terminals. The company already has confirmed off-take agreements for 60% of its storage capacity per development/acquisition from four international and local operators.”
Udo Udoma & Belo Osagie, The New Practice and Willkie Farr & Gallagher provided Synergy Capital with legal advisory services on the deal, while Frost & Sullivan, IBUSHE Engineering & Consultants and Mott MacDonald provided on commercial consulting, technical consulting and environmental and safety consulting services respectively.