Joint Press Release
Private equity consortium invests into supplier of corporate and promotional apparel
Johannesburg [9 October 2017] - A private equity consortium comprising RMB Corvest, RMB Ventures and Ethos MidMarket Fund have, alongside management, acquired 100% of Kevro, Africa’s largest value-add supplier of corporate and promotional apparel, and other brandable products. Kevro was acquired from Ethos Fund VI, which had owned a 72% stake in the group since 2011 and was looking to realise its investment.
The consortium was attracted by Kevro’s market-leading position and its ability to provide customers with a comprehensive range of quality Brand-Able™ solutions. The business is led by an impressive management team and has strong growth prospects.
“The Kevro investment represents an attractive opportunity to invest in an asset that is set up to deliver value over the medium term in partnership with like-minded investors. Over the last five years, Kevro has undertaken significant investment to build a platform for future growth and is now positioned to execute on its upside opportunities,” saysEthos Mid Market partner Edward Pitsi.
“Prior to the deal, we interacted with the Kevro management team on various occasions and found them to be impressive and very knowledgeable about their operations and the industry,” says RMB Ventures’Mbongeni Madonsela.“Our interaction with the team demonstrated a depth of experience and we believe we will be able to form a strong partnership with them. Their previous experience with a private equity partner will also help the relationship.”
“We identified strong growth prospects for Kevro driven especially by expansion into the rest of Africa assisted by a new partnership presence in East Africa, the impact of continued investment in newer categories, acquisitions and a new supplier partnership,” says RMB Corvestdirector Mike Donaldson.
Kevro chief executive StevenIsaacsonsays:“We look forward to working with our new partners in identifying new growth areas and continuing with the solid platform laid out by the existing management team and exiting shareholder, Ethos Private Equity.”
Absa Capital advised the sellers. The transaction is not subject to any outstanding regulatory approvals or conditions precedent.
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Notes to Editors
About Kevro
Founded in 1990, Kevro is Africa largest and leading supplier of corporate-branded clothing and promotional products. Kevro owns several well-known brands, including the industry flagship, BARRON. Their extensive range holds a world of possibility across a number of promotional marketing categories, including apparel, workwear, chefwear, sportswear, headwear, gifts, bags and display items.
Kevro’s head office and state-of-the-art branding facility is based in Johannesburg. The company operates from seven locations within South Africa and four more on the African continent.
Kevro is a “trade-only” supplier to more than 8,000 resellers and employs over 1,000 people.
For more information on Kevro visit
Kevro
Steven Isaacson, CEO
(W) 011 457 8777
About EthosMid Market Fund I
Ethos is widely considered to be the most experienced and successful private equity investment team in South Africa.
The Ethos Mid Market Fund I was launched in 2016. Ethos Mid Market Fund I seeks to make investments into high-growth potential companies where it believes it can create sustainable value by actively optimising strategy, operations and capital structures in partnership with management. Importantly, the Fund is majority-owned and managed by Black individuals. Ethos believes that the combination of significant empowerment credentials and strong private equity execution capabilities will give the Fund a distinct competitive advantage.
The Ethos Mid Market Fund I forms part of the Ethos Group which was founded in 1984, and pioneered South African private equity, concluding the first private equity-led acquisitions in the country. With a 33-year track record of successful investing in the South and sub-Saharan African markets, the Ethos Group has made 105 investments to date and successfully exited 94. Some of their better-known investments over the past few years include Twinsaver, Alexander Forbes, Tiger Wheel and Tyre, and Autozone.
For more information on Ethos Mid Market visit
Ethos
Chelsea Wilkinson, Head of Corporate Relations
(W) 011 328 7463
(M) +44 7758121177
About RMB Corvest
RMB Corvest is a private equity company and a member of the First Rand Group. Its status as an on balance sheet private equity company allows it to use its own funds for investment rather than third party funds. This ensures that the company is able to invest for the longer term and is not subject to exit timing pressures.
RMB Corvest currently has an investment portfolio in excess of 60 different businesses across a diverse range of industries.
For more information on RMB Corvest visit
RMB Corvest
Mike Donaldson, Director
(W) 011 – 380 8300
(M) 083326 5449
About RMB Ventures
RMB Ventures is a mid-market, South African private equity investor. As a subsidiary of FirstRand Limited we are an on-balance sheet provider of private equity capital and have invested in over 40 transactions since the mid-1990s. Our close association with Rand Merchant Bank (RMB) gives us access to the full suite of investment banking products.
For more information on RMB Ventures
RMB Ventures
Mbongeni Madonsela, Transactor
0112824904