Private Equity giant Carlyle is investing an undisclosed amount through its Sub-Saharan Africa Fund for a majority stake in Amrod, a supplier of promotion products and clothing to distributors in South Africa and other neighboring countries. The deal, which is subject to regulatory approvals, is expected to close before the end of the year.
“Through capital investment and acquisitions, we think the company has terrific growth potential,” said Braam Verster, a Director in Carlyle’s South African office. “We are particularly excited about the new state-of-the-art warehouse, production facility and showroom that is due to open in January. We believe it will allow the company to improve its lead times and serve additional countries in East and West Africa.”
Amrod, which was founded by Amit Brill, Nimov Barlev and Craig Friedman in 2002, has grown organically to become one of the largest promotional products suppliers in the sub-Saharan Region. The founders, who are reinvesting in the company alongside Carlyle, are welcoming the partnership, hoping to leverage the alternative asset manager’s experience and reach to achieve the Amrod’s growth ambitions.
The Sub-Saharan Africa Fund which closed in 2014 with $698 million in commitments has deployed almost $300 million to date. Its investments have been made across a number of sectors including logistics, agribusiness, mining services, retail and financial services in Nigeria, Mozambique, Zambia, Tanzania and South Africa.