Ethos Announces 101st Private Equity Investment
Ethos today announced its 101st investment, the c.R850m acquisition of South African corporate promotions company Kevro. The Kevro transaction follows heightened deal flow at Ethos over the past six months.
AndrÃ© Roux, Ethos CEO comments: "We are experiencing strong investment activity, having concluded the IPO of Holdsport and acquisition of Universal Industries in the second half of 2011. In addition, we anticipate making further announcements over the first half of 2012."
Founded in 1990, Kevro is the leading supplier of corporate clothing and promotional products in Africa. It sources and distributes the most comprehensive range of clothing in the industry, whilst offering a wide and growing range of corporate gifts and related branding services such as embroidery, printing and engraving. Kevro’s clothing products are primarily marketed under the well-known Barron brand. Kevro is also the exclusive distributor of CAT Work & Leisure Wear, Nike Golf Wear, and Indestruktible Bags.
Kevro’s products enhance corporate profiles through promotional brand building.
Anthonie de Beer, Ethos partner, commented: “Kevro is an attractive investment for Ethos, and was acquired through a proprietary relationship. Kevro presents significant growth opportunities, through continued market share expansion, product range enlargement and sub-Saharan development. Our partnership with the highly experienced executive team will strengthen and sustain this growth.”
Kevro operates from six locations within South Africa. The Group’s headquarters is located in Modderfontein, Johannesburg. This 12,000sqm high-rise state-of-the-art facility houses the group’s main warehouse, procurement and administrative divisions. The other five sites in Durban, Cape Town, Pretoria, Port Elizabeth and Bloemfontein operate primarily as sales and distribution depots. This distribution network provides Kevro with an extensive reach throughout South Africa.
Steven Isaacson, Kevro Joint CEO stated: “We are excited to be collaborating with Ethos to enhance our growth. Ethos brings proven business gravitas to the table. Management firmly believes that this transaction represents a significant milestone in Kevro’s history.”
The Kevro transaction was facilitated by the exit of private and founder shareholders. Ethos has acquired a 72% shareholding, while management retains the remainder.