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COMPANY:

RTT

YEAR: 2014
BUSINESS DESCRIPTION: Logistics
INVESTMENT PARTNERS: Management, PIC and DPI
ENTERPRISE VALUE (R'M): Not disclosed

Another epic road trip begins...

Successful private equity investments are founded in partnership and grounded in a shared vision. The Ethos-led acquisition of South African logistics firm RTT embodies this principle.

After patient analysis, Ethos actively pursued RTT as an attractive Fund VI investment. In little over six months, we were able to discreetly negotiate, decisively execute and successfully conclude the transaction.

Why did we venture so keenly along this investment path? Simple. We liked the asset. We shared a vision. But most importantly, we managed to align management and shareholders.

RTT is Africa’s largest privately-owned parcel distribution company. For over 30 years it has been a market leader in third-party logistics and distribution and a forerunner in break bulk and express distribution.

RTT’s footprint extends across sub-Saharan Africa, comprising over 120,000m2 of warehousing and cross docking facilities. RTT has a combined fleet in excess of 1,200 vehicles and employs close to 5,000 people. Revenues exceed R2,5 billion per annum.

Ethos bought into RTT management’s strategic vision. Consequently we identified consortium partners with equal appetite for a growth journey, who were supportive of continued African expansion, and who enabled us to facilitate a fully-funded BEE solution. The Public Investment Corporation and DPI were natural travel companions. The consortium acquired c.80% of RTT, for an undisclosed sum. RTT’s senior management team and a black empowerment staff trust hold the remainder of RTT’s share capital.

Together, we have set the strategic compass. Together, we will scour the horizon for opportunities. And like all good road trips, we recognise that the success of the journey determines the destination.