Catalyst acquires EFFCO Tanzania Ltd
*Nairobi*- Kenya-based private equity firm Catalyst Principal Partners has
announced acquisition of majority stake in Tanzania of a heavy equipment
rental and logistics firm, EFFCO. Catalyst Principal Partners invests
amounts of between US$5million – US$20million into deals with an average
investment period of between 4 to 6 years.
The management-backed buyout is consistent with Catalyst’s strategy of
investing in emerging companies within high-growth sectors across eastern
Africa. Catalyst has backed a dynamic management team with ambitious
growth aspirations, with local senior managers acquiring a significant
equity interest alongside Catalyst and being empowered to drive an
accelerated growth strategy.
“We see great growth potential in EFFCO,” Catalyst Managing Director Rajal
Upadhyaya said. “We are impressed with the range and sophistication of
services they offer blue chip companies across industrial, construction,
mining and oil and gas sectors – all high-growth areas with significant
demand and potential for the specialized best-in-class services and health
and safety standards that EFFCO can provide.””This opens new frontiers for
the company,” EFFCO Group CEO George Miseda remarked. “Catalyst’s ability
to add value, its active investment approach and extensive networks will
allow us to rapidly scale up our operations and expand the business to take
a leading positioning in Tanzania and across the rest of the east African
region”
Acquisition of EFFCO is the fourth deal Catalyst Principal Partners has
announced in the region since it successfully raised a US$125million
(KSh10.8 billion) private equity fund, focused on investing in eastern
Africa. The private equity firm has also invested in ChemiCotex, a leading
personal and oral care manufacturer, and Chai Bora, the largest tea
packaging firm, both based in Tanzania. The firm has also invested in
Ethiopia’s Yes Brands, the leading mineral water bottling company in
Ethiopia.