Rockwood Private Equity (“Rockwood”) is pleased to announce that it has entered into an agreement with Euronext-listed Wendel (MF.FP) regarding the sale of its interests in the Tsebo Group (“Tsebo”) for an attributable enterprise value of ZAR5.25 billion. Tsebo is a leading Pan-African facilities services provider, employing 34,000 people across 23 countries and generating revenue of approximately ZAR6.5 billion.
The future ownership structure of Tsebo will include a BEE consortium in South Africa that will partner with Wendel and maintain Tsebo’s Level 1 BBBEE status under the BEE Codes.
Tsebo was acquired by Rockwood in 2007 in a secondary buy-out. Rockwood partnered with management and facilitated the investment of two BEE partners, Nozala Investments and Lereko Investments.
CEO of Rockwood, Andrew Dewar said “We believe that Wendel will be a great partner to Tsebo and together with management will continue to grow the business. During the time that Rockwood has held Tsebo it has grown from a primarily South African company with 9000 employee’s into a Pan-African platform with over 34,000 employees. In South Africa it has improved from a Level 3 BBBEE rating to a Level 1 BBBEE rating. We are certain that these trends will accelerate into the future with Wendel as a partner and we wish them every success.”
Speaking about Rockwood's strengths, Dewar said: "Key to our success is the stability of our senior leadership team, all of whom were employed by Barclays Africa and were involved in the acquisition of our portfolio."
Clive Smith, Chief Executive Officer of Tsebo said, “Tsebo, with Rockwood, Nozala and Lereko support, has built a proud history of supporting its clients through the unique combination of delivering global standards with a deep African expertise. We thank the team at Rockwood for all their support over the years to build Tsebo into the company it is today. We are delighted to be able to partner with Wendel, as they bring a true global capacity while at the same time allowing Tsebo to maintain the entrepreneurial culture which enables us to exceed our customer’s expectations.”
Completion of the sale is subject to fulfilment of certain suspensive conditions, including obtaining the requisite regulatory approvals.
Deutsche Bank acted as financial adviser and Bowman as legal adviser to Tsebo and Rockwood regarding the sale.
Rockwood is a prominent South African private equity fund manager and is the general partner of Rockwood Fund I. Rockwood was established in 2013 following the sale by Barclays Africa of its private equity interests to the investment team and two international private equity investors in a first of its kind secondary buy-out in South Africa. Rockwood is an active private equity house which focuses on taking substantial equity positions in medium to large sized companies which have experienced management teams.
Wendel is one of Europe's leading listed investment firms. The Group invests internationally, in companies that are leaders in their field, such as Bureau Veritas, Saint-Gobain, Cromology, Stahl, IHS, Constantia Flexibles and Allied Universal. Wendel plays an active role as industry shareholder in these companies. It implements long-term development strategies, which involve boosting growth and margins of companies so as to enhance their leading market positions. Through Oranje-Nassau Développement, which brings together opportunities for investment in growth, diversification and innovation, Wendel is also a shareholder of exceet in Germany, Mecatherm in France, Nippon Oil Pump in Japan, Saham Group and SGI Africa in Africa and CSP Technologies in the United States.
Wendel is listed on Eurolist by Euronext Paris.
Standard & Poor’s ratings: Long-term: BBB-, stable outlook – Short-term: A-3 since July 7, 2014. Wendel is the Founding Sponsor of Centre Pompidou-Metz. In recognition of its long-term patronage of the arts, Wendel received the distinction of “Grand Mécène de la Culture” in 2012.