Medu Capital (Pty) Ltd., a South African private equity firm, announced that it has acquired 100% ownership stakes in Universal Paints and Elite Truck Hire for R450 million ($30.6 million) through the company's private equity fund Medu III. The investments will include a management buy-in component.
Elite Truck Hire has provided short- and long-term truck hire and full-maintenance leasing for over 25 years in South Africa. The company has two offices in Midrand and Cape Town and more than 150 customers with a fleet strength of more than 1,200 vehicles. The company also offers refrigeration equipment and crane trucks. Elite Truck Hire also has two associated businesses: Elite Line Haul, a heavy, long distance transport operator, and Elite Forklift Rental, a range of forklift trucks available for full-maintenance leasing and short-term rental.
Universal Paints was founded in 1982 by Tony Ferreira and manufactures and supplies decorative paint and coatings. The company is solely supplied through its 16 dedicated factory outlets in Gauteng.
Medu Capital invests in established medium-sized enterprises in South Africa and the rest of Africa. The executive management team invests alongside its investors. Medu Capital executive Paul Moeketsi, who was involved in the deals, said he managing directors who have been appointed invested alongside Medu Capital.
“Both Elite and Universal deliver high quality products and services to its customers and have experienced and successful management teams. In the case of Elite, we have increased our initial 27% stake acquired in 2007 to 100%, which we believe sends a clear signal of our confidence in the company and its management,” Moeketsi said.