Plumb deal for Ethos Fund V
Ethos Private Equity has announced the completion of the purchase of Plumblink SA (Pty) Limited (“Plumblink”), a plumbing and sanitaryware company, by an Ethos led consortium from a number of sellers, including Investec.
This transaction is one of the maiden investments in Ethos Fund V, which will ultimately hold 50.1% of the shares.
Other consortium members include existing and new management, and ISS, a 100% black owned business.
Ethos partner, Shaun Zagnoev, says: “We believe that Plumblink is a quality asset, which will go from strength to strength, given the significant planned infrastructure spend by Government in coming years and the increased confidence and anticipated growth in the housing and construction industry.
Plumblink is the leading merchant of plumbing material and sanitaryware through 23 stores in 7 regions in South Africa, and trades under the brand names of Plumblink and Bathrooms By Design. The business, aimed at middle to upper markets, is broken down into three primary areas: the retail market, the contracting market and the maintenance market. The plumbing industry in particular should benefit from Government’s intended infrastructure investment programme. “Plumblink is capable of servicing the building and construction industry at a national level and has the infrastructure in place to allow for controlled expansion thereby increasing its national footprint and broadening its product range to customers.” comments Ethos Principal, Anthonie de Beer.
Senior management changes at Plumblink include the planned retirement of CEO, Colin Anderson as of end March 2006.
Furthermore, Ethos is pleased to announce the establishment of a partnership with Yannick Lakhnati, who has been introduced as Plumblink’s new CEO effective 1 April 2006. Yannick was formerly CEO of Rainbow Chicken Ltd and COO of Richemont. He brings proven leadership and strategic management skills to Plumblink to take the company to the next level. He says of his new role: “I am excited to partner Ethos in the acquisition of Plumblink, a market leading business in a growth industry, and look forward to expanding the horizons of the business and the relationship with Ethos.”
The shareholding includes a 25% BEE component through the company’s existing BEE shareholders, ISS - Jethro Mbau and Zolile Maqetuka, and other broad based BEE, which will allow Plumblink to capture regional and national government tenders as well as additional private sector opportunities. Jethro Mbau of ISS comments: “As a fully funded black empowered company, Plumblink will be ideally positioned to participate in the significant government led infrastructure upgrade plan and the provision of plumbing related products to local and regional government bodies.”