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COMPANY:

Savcio

EXIT YEAR: 2011
BUSINESS DESCRIPTION: Industrial engineering (repairs & services and replacement parts)
INVESTMENT PARTNERS: Management, Actis, Old Mutual, Sphere Holdings and Aka Capital

A textbook example of how private equity can generate value for all stakeholders.

The combination of active shareholding and management freedom facilitated optimised strategy, operations and capital.

In 2005, Ethos co-led a private equity consortium in the R1,4bn acquisition of SAVCIO from Delta Electrical Industries Limited. Together with management, Actis, Old Mutual, and BEE partners Sphere Holdings and Aka Capital, Ethos was instrumental in driving performance, redefining strategy, and catalysing growth.

Over the next six years, SAVCIO dominated motor and transformer maintenance and repair services in Africa.

Success was achieved by investing for growth. SAVCIO diversified revenue streams across sub-Sahara, maximised operational efficiencies, disposed of a non-core and, during the global financial crisis, astutely repurchased a portion of its Euro high-yield bond at a discount. Moreover, SAVCIO matured to become a highly prized, attractive asset.

In early 2012, the proactive partnership of shareholders and management culminated in the successful auction of SAVCIO to a trade buyer. The sale concluded Ethos’ Fund IV realisation programme, and generated significant value for all stakeholders.

The SAVCIO transaction is a private equity paragon. It exhibits the positive impact of collaboration, creativity, and capital.