KAP Industrial Holdings is spending $310 million to acquire Safaripol giving South Africa’s Rockwood Private Equity, Thebe Investment Corporation and the company’s management team a full exit from their investment. According to the press release announcing the deal, the Safripol investment has yielded its investors well above average private equity returns.
“This is a large private equity transaction and we are delighted with the outcome” commented Andrew Dewar, Rockwood’s CEO. “It represents years of hard work by an outstanding management team and is a fitting completion to the original acquisition. Thebe has been an ideal partner and we are very grateful to them for their team’s insights and active contribution to the company.”
Safripol, which was established in 1972, manufactures Polypropylene and High-Density Polyethylene, used to manufacture an extensive range of industrial and consumer plastic products. In 2015, the company generated after-tax profits of R488 million. The investment consortium first backed Safripol in 2006 when they purchased the company from Dow Chemicals. Rockwood’s senior leadership are the same private equity team who first invested in Safripol on behalf of Absa Capital who then acquired Rockwood from Absa.
Completion of the deal, which is expected in January 2017, is subject to customary regulatory approvals and conditions.