Media And News
Private equity consortium acquires building materials company Everite from Group Five
South African buildings materials company Everite has been fully acquired by a private equity consortium comprising Legacy Africa Capital Partners and Lonsa Group together with Everite’s management.
Everite was purchased from Group Five as part of the construction company’s business rescue process. Following a competitive auction, the consortium emerged as the preferred bidder. Lonsa Group, Legacy Africa Capital Partners and management’s shareholding are 58%, 25% and 17%, respectively. The acquisition includes the purchase of the freehold property from which Everite operates from a third-party owner with the resultant entire transaction being completed at an enterprise value of some ZAR 600 million, which was partially funded by Nedbank Limited.
Legacy Africa Capital Partners participated in the acquisition through its Legacy Africa Capital Partners Fund I and is the black economic empowerment (BBE) partner.
Everite, established in 1941, produces a wide range of building materials for the commercial, industrial and residential building segments in South Africa. Everite is renowned for its comprehensive range of Nutec roofing and cladding solutions, which includes fibre cement roofing, cladding, ceilings and building columns amongst others.
Kgosi Monametsi, Managing Director of Legacy Africa Capital Partners, commented: “Everite is the largest manufacturer of fibre cement in southern Africa. We were attracted by its dominant market position, resilient financial performance, and diverse product range and customer base. The business is led by an impressive management team and has robust growth prospects.”
Robin Vela, Executive Chairman of Lonsa Group, said: “Everite is a highly cash-generative business and has been one of Group Five’s star performers for at least a decade. The company is expected to benefit from a rebound in South Africa’s construction industry as the country emerges from the Covid-19 crisis. Greater public infrastructure spending could also create attractive opportunities for the company. As a pan-African investment firm, we are excited by the prospects of expanding Everite’s business into the rest of the continent.”
Jurgen Stragier, Managing Director of Everite, added: “This transaction is a vote of confidence in Everite’s more than 460 employees, who have been instrumental in the company’s performance despite a demanding external environment. With the capital injection from our new partners, all these jobs will be retained and we look forward to creating even more employment opportunities as the company grows.”’
Everite (Pty) Ltd was established in 1941 and is the leading industrial manufacturer of a range of building products for the South African building industry’s commercial, industrial and residential market sectors. Everite is known for its comprehensive range of Nutec Roofing and Cladding Solutions, which includes fibre cement roofing, cladding, ceilings and building columns amongst others. Everite is also the license holder for various leading alternative building systems and technologies.
About Lonsa Group
Lonsa Group Limited, a Mauritius incorporated holding entity, is an investment vehicle with interests in the energy, industrials and property sectors in Southern Africa. Lonsa was created in 2004 and has a track record of concluding complex corporate transactions. The group’s principals have significant experience in working and investing throughout Africa. Over the past 15 years, they have been involved in transactions with a total deal value in excess of USD 2.5 billion. The company has offices in Johannesburg, Harare, Ebene and London.
About Legacy Africa Capital Partners
Legacy Africa Capital Partners (LACP) was founded in September 2018 and is a private equity fund management business. LACP is the manager of Legacy Africa Capital Partners Fund I and is part of Legacy Africa Fund Managers. LACP is a 100% black-owned and managed company comprising a team of deal principals with a long history of private equity investing. The firm seeks to provide capital to entrepreneurial, unlisted companies seeking expansion or buy-out capital to introduce black shareholding to drive growth.
Enquiries contact Kgosi Monametsi at firstname.lastname@example.org