The Carlyle Group and Old Mutual Private Equity to acquire 100% of Tiger Automotive
Investment secures next phase of growth and expansion
Global Alternative Asset Manager The Carlyle Group (NASDAQ: CG) and Old Mutual Private Equity today announced that they have agreed to acquire 100% of South African tyre retailer and wholesaler Tiger Automotive (TiAuto) from Ethos Private Equity and the founders. Funding for this investment will come from the Carlyle Sub-Saharan Africa Fund and Old Mutual Private Equity Fund IV, and TiAuto founders will also re-invest equity in the company. The transaction is expected to close in early 2015, subject to regulatory approvals.
TiAuto, which operates the iconic “Tiger Wheel & Tyre” brand as well as the new “Tyres & More” retail store format, is a retail and wholesale distributor of primarily automotive tyres from major global manufacturers such as Continental, Yokohama, Michelin, Pirelli, Goodyear, Achilles, GT Radial and Hankook. The company also distributes alloy wheels, automotive batteries and other auto parts and offers related fitment services. Established in 1967 by Eddie Keizan and Keith Rivers, the company currently has 104 owned and franchised stores across Southern Africa and employs over 1,500 people.
Marlon Chigwende, Head of the Carlyle Sub-Saharan Africa Fund, said: “Carlyle is pleased to be an investor in TiAuto alongside Old Mutual Private Equity and management. This is a robust business with a history of strong and consistent performance, run by a talented, experienced management team. As one of the most established and trusted brands in its sector in South Africa, TiAuto is well positioned to continue growing the business, and we are delighted to join them on this journey. Carlyle will also leverage its global automotive and consumer sector experience having previously invested in similar companies around the world.”
Jacci Myburgh, Head of Old Mutual Private Equity, said:“We are excited to partner with Alex and his team in writing the next chapter of the TiAuto story. We acknowledge the legacy that the founders and Ethos have created, and the honest, hardworking culture resonates deeply with us.”
Alex Taplin, Chief Executive Officer of TiAuto, commented: “Management is excited and optimistic about the prospects that lie ahead for our new partnership with Carlyle and Old Mutual Private Equity. They represent a combination of best-in-class experience with South African relevance and global significance, which will support the company’s growth plans. Having said that Management are sad to lose Ethos Private Equity as a partner in line with their investment horizon, they have made a meaningful difference in our business for which we will always be thankful. Management will co-invest significantly alongside Carlyle and Old Mutual, which illustrates our respective shared commitment. Thanks must also go to the many hardworking members of our team as well as our key suppliers, which work alongside us ensuring that we continue to give our customers the best service in the business.”
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $203 billion of assets under management across 129 funds and 141 fund of funds vehicles as of September 30, 2014. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including aerospace, defence and government services, consumer and retail, energy, financial services, healthcare, industrial, real estate, technology and business services, telecommunications and media, and transportation. The Carlyle Group employs 1,700 people in 40 offices across six continents.
Established in 2012 the Carlyle Sub-Saharan Africa Fund and its affiliates, with $698 million of committed capital, have invested almost $300 million to date across a variety of industries, including logistics, mining services, retail and financial services, and across a variety of geographies, including Nigeria, Mozambique, Zambia, Tanzania, the Democratic Republic of the Congo and Southern Africa. The fund makes buyout and growth capital investments in private and public companies from offices in Johannesburg, South Africa and Lagos, Nigeria.
About Old Mutual Private Equity
Old Mutual Private Equity is one of the largest and most established private equity managers in South Africa, with approximately R12 billion of assets under management. OMPE is currently investing its fourth fund, a R4 billion fund focused on high-quality, predominantly South African businesses. OMPE has invested in many of the top private equity deals (by value) in South Africa over the past decade, including Pepkor, Life Healthcare, Actom, Idwala, Tourvest, Libstar, Shanduka and Primedia.
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