Photo by: Duane Daws
Private equity investor Ethos has bought a controlling interest in Southern Africa-focused aftermarket automotive parts retailer and wholesaler AutoZone for an undisclosed amount.
Black economic-empowerment investors and AutoZone’s management would retain a stake in the company, which has 151 retail and wholesale branches and 37 member-owned franchise branches across South Africa, Namibia, Zimbabwe, Swaziland and Botswana.
Three Ethos investment professionals, including partner Christo Roos, would join the AutoZone board, in line with Ethos’ role of actively partnering with management to shape and implement growth strategies.
Roos said in a statement on Wednesday that the acquisition was attractive for Ethos as it fell in line with its strategy of investing in differentiated high-growth propositions.
“Through our partnership with AutoZone’s experienced management team, we expect [to grow] the business geographically, while improving customers’ experience through an expanded retail footprint. Together, we have already identified immediate opportunities and have embarked on a rigorous programme to accelerate AutoZone’s growth strategy,” he said.
“We relish the opportunity to collaborate with a firm such as Ethos, given [its] excellent record of investing for growth in South Africa. Together, I believe we will make good on the opportunities ahead of us, to the benefit of our business, shareholders, staff and most importantly, our customers,” added AutoZone CEO Wayne Loraine Grews.
Roos noted that flexible financial facilities had been negotiated and were in place to ensure Ethos’ envisioned growth strategy. Debt for the transaction was provided by financial services provider Barclays Africa Group.
AutoZone was the fourth investment Ethos had concluded through its R7.9-billion Ethos Fund VI. Last year, it acquired South African logistics supplier RTT.