Waco Africa, the South African business of Waco International, on Monday announced a strategic long-term Black Economic Empowerment (BEE) agreement with the Kagiso Group.
Waco International was recently sold in one of the largest-ever foreign equity buyout investments in South Africa, for R5,4-billion.
Waco Africa’s former BEE partner, Kagiso Ventures, a provider of empowerment capital, was entitled to realise its 25,1% investment in Waco Africa, as a result of this acquisition.
Recognising the substantial growth in their initial investment in Waco Africa, Kagiso Ventures sold its stake, realising several hundred-million rands.
Kagiso has now purchased a new stake of 25% in the company. This investment has been made by Kagiso Strategic Investments, a long-term investment vehicle within the Kagiso stable.
Waco Africa and Kagiso initially established relations in 2001 and worked together in formulating the growth strategy for the company. Kagiso will continue to contribute to the success of Waco Africa by growing the business and winning new customers. Waco Africa customers will benefit from a more attractive business proposition.
Kagiso will continue to work with Waco Africa to help its transformation initiatives. This new deal means that customers can count their business with Waco Africa towards their empowerment procurement spend, the companies said.
Stephen Goodburn, Group Financial Director of Waco International, commented: “We are delighted that Kagiso has committed itself to Waco Africa over the long term as our black-empowerment partner. Kagiso is highly reputable and we are excited to be continuing our partnership as we grow our South African business.”
Dave Best, Managing Director (MD) of Waco Africa, added: “It is great that Kagiso has shown its continued confidence in us by reinvesting in the company. They have got to know us well, and are therefore in a good position to carry on helping us to develop new business opportunities for both Form-Scaff and SGB-Cape in South Africa.
“They bring a wealth of contacts within the parastatal sector where, with the major planned investment in infrastructure in the economy, we are well placed to participate.”
Afzal Patel, MD of Kagiso Ventures, said: “We have been exceptionally pleased with the performance of our investment in Waco Africa to date, and were therefore keen to realise the gains from the sale for Kagiso Ventures. Looking to the future, we have considered the bright prospects and strong market position of Waco Africa and have therefore acquired a new stake in the company.
“We have agreed to remain invested for the long term, which is in accordance with our investment criteria.”
Waco Africa, trades under the brand names Form-Scaff and SGB-Cape, and is the market leader in scaffolding, forming and shoring in Southern Africa. — I-Net Bridge