South African LBO record smashed
Building company Waco International has been sold to a private equity consortium for R5.4 billion, the largest ever such deal in South Africa.
The deal was concluded with CCMP Capital Asia, JPMorgan Partners Global Fund, and a senior management team led by Waco International chief executive Royden Vice for R5.4 billion. The buyout takes management’s stake in the company to 15%.
Waco had earlier been considering an IPO on the Johannesburg Stock Exchange but withdrew these plans last October once the possibility of the buyout became known. The company had delisted from the JSE in 2000.
“We are pleased with the value this transaction has unlocked for shareholders,” says Vice. “We were looking to list but after reviewing CCMP Capital’s offer we had to review that decision. There will be a considerable inflow of foreign capital into South Africa as a result of this transaction.”
Waco’s two main areas of business are forming, shoring and scaffolding, and temporary modular buildings. “This is our first investment on the African continent, and we look forward to rewarding returns,” says Stephen King, a partner at CCMP Capital.