Private investment firm Legacy Africa Capital Partners (LACP) has struck its second deal of the year by picking up a 60% stake in stationery and plastics conversion firm Penflex for an undisclosed amount.
The transaction, which was completed a few weeks ago, involves LACP also acquiring the full plastics conversion business of Penflex’s parent company, Alplas Plastics.
The investment firm routed its deal via Legacy Africa Capital Partners Fund 1. It will have two nominees on the Penflex board and has kept an investment horizon of between five and seven years.
Penflex is essentially a stationery firm. It will now have a wide product range including stationery (pens, markers, highlighters, stencils, rulers, pencil boxes and lunch boxes), homeware (plastic glassware, plates, bowls, jugs, trays, laundry baskets, cooler boxes and bins), office storage drawers as well as window blind components.
The group was started around 35 years ago by Asher Saban, founder and managing director of Alplas Plastics and Penflex. Penflex is separately led by Sean Stuttaford.
Kgosi Monametsi, managing director of LACP, said that Penflex is a growing player in the niche plastic conversion market in South Africa and the deal became attractive with the footprint for export in the northern hemisphere with its window blind components.
For LACP, which was founded in September 2018 as a private equity fund management business, this is the second deal this year. It comes soon after the firm participated in the management buyout of South African buildings materials company Everite from financially stressed firm Group Five.