Private equity company Medu Capital has parted with an aggregate R450-million to acquire 100% of paint and coatings manufacturer and supplier Universal Paints and to raise its 27% stake in truck hire firm Elite Truck Hire to 100%.
New MDs, both of whom had invested alongside Medu, had been appointed at each firm, Medu Capital executive Paul Moeketsi said in a statement on Wednesday, adding that the acquisitions were made through the company’s third-private equity fund, Medu III, and included a management buy-in component.
Universal had 16 dedicated factory outlets in Gauteng, while Elite provided short- and long-term truck hire from offices on the East and West Rand, Midrand and Cape Town, to more than 150 customers with a 1 200-strong fleet.
Elite had two associated businesses, namely distance transport operator Elite Line Haul and Elite Forklift Rental.
The deals were in line with Medu’s strategy of investing in well established businesses with a proven record of success, with Medu cofounder and director Nhlanganiso Mkwanazi saying the group actively sought portfolio companies in which to invest.
“We closed Medu III in 2014 with capital of R1.1-billion and this fund still has significant capital to invest,” the company pointed out.