The Valence Group has advised Safripol Holdings Proprietary Limited (“Safripol”) on its sale to KAP Industrial Holdings Limited (“KAP”) for an enterprise value of ZAR4.1bn (c. US$310m). This successful intra-Africa sell-side transaction highlights the truly global nature of The Valence Group’s reach and capabilities.
Completion of the transaction is subject to customary regulatory approvals and conditions precedent.
Safripol is a South African producer of polypropylene and high-density polyethylene used for an extensive range of industrial and consumer products. Established in 1972 as a joint venture between Hoechst and Sentrachem, Safripol was purchased in 1999 by Dow Chemical and subsequently sold in 2006 to a consortium of private equity and other investors, including Rockwood, Thebe Investment Corporation (“Thebe”) and certain members of the management team. Safripol generated after tax profits of ZAR488m in 2015.
Rockwood is a leading South African private equity fund manager which focuses on taking substantial equity positions in medium to large sized companies that have experienced management teams.
Founded in 1992 as a pioneering black-owned company, Thebe is one of South Africa’s leading investment companies, managing assets of over ZAR6bn spanning multiple sectors. It is a unique entrepreneurial company that does not exist only to make a profit, but is driven by a commitment to serve the broader interests of communities at large.
KAP is a diversified industrial company listed on the Johannesburg Stock Exchange with a market capitalization of c. ZAR16bn. It is predominantly focused on industry-leading businesses operating in African markets.
KAP’s major shareholder is Steinhoff International Holdings NV (“Steinhoff”) which holds approximately 43% of KAP. Steinhoff is an integrated retailer that manufactures, sources and retails furniture, household goods and general merchandise, and is listed on both the Johannesburg and Frankfurt Stock Exchanges with a market capitalization of c. €22bn.
About The Valence Group
The Valence Group is a specialist investment bank offering M&A advisory services exclusively to companies and investors in the chemicals, materials and related sectors. The Valence Group team includes a unique combination of professionals with backgrounds in investment banking and strategic consulting within the chemicals and materials industries, all focused exclusively on providing M&A advisory services to the chemicals and materials sector. The firm’s offices are located in New York and London.