PE firm Amethis invests in Ivory Coast’s SIBM
Private equity firm Amethis, which was one of the most active PE investors in Africa in 2021 and is in the process of sewing a club deal in Egypt, has signed its first new transaction of this year.
Amethis has acquired a minority stake in SIBM, a manufacturer of precast concrete products in Côte d’Ivoire.
Although Amethis did not disclose the deal details, a digital news agency said the PE firm is investing $26 million. Of this, around $12.5 million is in the form of equity for a 33.4% stake and the remaining amount is via convertible bonds.
SIBM was founded in 1952 in Abidjan. It makes concrete electric poles, and builds infrastructure such as culverts, guardrails and rail sleepers.
Led by Serge Bilé, the company has 1,200 employees and eight production sites located near the West African nation’s major business hubs including Abidjan, Yamoussoukro and San Pedro.
Through this investment, Amethis intends to support SIBM in upgrading and increasing its production capabilities and diversifying its products across its various business segments. In addition, Amethis will provide SIBM access to its network and experience in the West African sub-region to execute its geographic expansion strategy.
Khady Koné-Dicoh, partner at Amethis, said that SIBM addresses core urbanization issues in Cote d’Ivoire and has experienced “remarkable growth” over the past five years which is expected to continue.
SIBM represents the sixth investment by Amethis in Côte d’Ivoire.
SIBM CEO Bilé said that Amethis’ investment will help in starting the company’s regional expansion in West Africa and notably in Senegal. “Our ambition is to become a regional player in precast concrete in West and Central Africa.”
“Amethis’ investment is timely and will allow us to strengthen our position in Côte d’Ivoire by continuing the modernization of our production capabilities throughout the country,” Bilé said.
Lexways Côte d’Ivoire and ISF Conseils acted as legal advisor and financial advisor, respectively, to SIBM. Maître Jean-Jacques Lecat, a lawyer at the Paris bar specialized in transactions with African countries, advised Amethis.
PriceWaterhouseCoopers Côte d’Ivoire and Onpoint Africa advised Amethis on financial and tax due diligence, and market due diligence, respectively.
ESG Africa and Bureau Veritas advised the PE firm on ESG due diligence and technical due diligence, respectively.