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COMPANY:

Brandcorp

YEAR: 2007
BUSINESS DESCRIPTION: Distribution of niche industrial and retail products
INVESTMENT PARTNERS: Management
ENTERPRISE VALUE (R'M): R1,3bn

Playmaker

Ethos moves Brandcorp forward

In rugby, the player who is able to distribute the ball to the right channel, to the team's best advantage, is invaluable.

In the same way, in this era of globalisation, a company that provides excellence in global procurement and distribution is
invaluable in a future where effective global supply chains are the enablers of competitive advantage.

With this in mind, Ethos has partnered with management to invest in Brandcorp, a value-added distributor and selective brand
owner of niche industrial and consumer products, in a R1.32 billion public-to-private transaction.

Brandcorp, a market leader in brand building and efficient distribution, is well-positioned to benefit from anticipated expansion in many of the higher growth industries in the South African economy. The company operates four divisions: Tools & Hardware (trading as Matus), Leisure & Accessories (trading as Cellini), House & Home (trading under MIC, Prestige, Decocraft) and Motor, Leisure & Travel accessories (trading under Moto Quip).

The transaction will combine Brandcorp's reputation as a leading supplier, with experience in procurement and warehouse management, together with Ethos' growth capital, expertise and intellectual capital. The transaction also facilitates the introduction of BEE, together with the opportunity for the next level of management to actively participate in meaningful equity; both crucial components in setting the ground for strategic, long-term-oriented management decision making.

The Brandcorp deal is the sixth investment in Ethos Fund V. It demonstrates Ethos' willingness to pay a good price for well-run businesses driven by strong management teams, where Ethos' financial acumen, proactive partnership approach and ability to facilitate meaningful empowerment contributes towards unlocking and creating value.