Vuna Partners, a sector-agnostic mid-market private equity firm which recently hit another milestone for its maiden fund, has sealed its second transaction with the acquisition of SA Steelpack Solutions.
The development comes a month after The Capital Quest first reported that the PE firm was set to take over the South African tinplate packaging manufacturer.
SA Steelpack has a production operation, assembly and decorative finishing plant in Tongaat, Kwa-Zulu Natal. It also has a satellite distribution and storage facility in Gauteng. It supplies double-seam tin cans and pails, as well as three-piece seam-welded aerosol cans to customers in the chemical, industrial coatings, cosmetics and speciality sectors.
“The acquisition represents significant growth prospects for Steelpack in terms of enhanced empowerment credentials, industry certification and increased production capacity,” said Siya Nhlumayo, CEO of Vuna Partners.
The fund and Steelpack management acquired 100% of Steelpack from the incumbent shareholders, who have also served in an executive management capacity since the company’s establishment in 2014.
The deal size was not disclosed but the PE firm has a sweet spot for transactions in the range of ZAR40-120 million ($3-8 million).
Vuna’s first deal, struck last year, was also a control transaction where it acquired an 80% stake in fourth-party logistics company 4PL Group.
The new deal comes soon after the firm made a second close of its first fund, allowing it to garner around three-fourths of its target corpus within a year of launch.
Vuna was set up by two executives with an accounting background, Nhlumayo and Shafiek Rawoot. It is aiming at ZAR600 million ($40 million) corpus by March 2022.
Vuna is aiming to invest in six-seven businesses over a four- to five-year investment term across a variety of sectors.
The PE firm is focused on South Africa and looks at owner-managed businesses. However, it could invest in neighbouring countries like Botswana and Namibia as they are similar to South Africa in terms of the economy and growth opportunity. It may also invest in Zambia and Swaziland.