Rockwood and Thebe Exit Safripol

11 August 2016

Rockwood Private Equity is pleased to announce the successful sale by Rockwood Fund I, Thebe Investment Corporation and management of Safripol to KAP Industrial Holdings ("KAP"), a Top 100 company listed on the Johannesburg Stock Exchange, for an equity value of 4 100 million.  Completion is subject to customary regulatory approvals and conditions precedent.

"This is a large private equity transaction and we are delighted with the outcome" commented Andrew Dewar, CEO of Rockwood.  He added that "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 was acquired in 2006 by the same private equity team which comprises the present Rockwood leadership.  In 2013 Rockwood was acquired by its management team from Absa at the same time that Absa, in the only secondary private equity transaction of its kind in South Africa, sold its majority interest in the Absa Capital Private Equity Fund I to two international private equity fund investors.  Rockwood is very pleased that its investment in Safripol has yielded well above average private equity returns.

Established in 1972 as a joint venture between Hoechst and Sentrachem, Safripol was purchased in 1999 by Dow Chemicals and subsequently sold in 2006 to Rockwood, Thebe and certain members of the management team.  Safripol manufactures Polypropylene and High-Density Polyethylene, used to manufacture an extensive range of industrial and consumer plastic products.

KAP is invested in a number of industry-leading industrial businesses managed within two divisions: Diversified Logistics and Diversified Industrial.

"The acquisition of Safripol is complimentary to KAP's existing operations.  KAP has an exceptional management team and we always saw Safripol as an ideal fit for their business. We are very pleased to have concluded a deal with them," said Dewar.  The acquisition of Safripol will establish a new Diversified Chemical division for KAP which will incorporate KAP’s existing Woodchem and Hosaf businesses.

Speaking about Rockwood's strengths, Dewar said: "Key to our success is the stability our senior leadership team, all of whom were employed by Absa Capital and were involved in the acquisition of our portfolio.