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ETHOS BUYS SOUTH AFRICA CORPORATE CLOTHING COMPANY KEVRO FOR $108M
ALTASSETS: 30 January 2012
Johannesburg-based private equity firm Ethos has bought South African corporate clothing company Kevro for ZAR850m ($108m).
Founded in 1990, Kevro supplies corporate clothing and promotional products in Africa. The company’s products are primarily marketed under Barron brand. Kevro also distributes CAT Work & Leisure Wear, Nike Golf Wear, and Indestruktible Bags.
Kevro operates from six locations within South Africa. The group’s headquarters is located in Modderfontein, Johannesburg, which houses its 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.
Anthonie de Beer, a partner at Ethos, said, “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.”
The Kevro transaction was facilitated by the exit of private and founder shareholders. Ethos has acquired a 72 per cent shareholding, while management retains the remainder.
In October last year Ethos also led a consortium of investors in the $165m take-private of JSE-listed Universal Industries, which supplies refrigerated display cases, polyurethane insulated panels, commercial ovens and catering equipment to the food retail, wholesale, hospitality, manufacturing and related industries.
