Ethos Private Equity acquires majority stake in RTT Group

A private equity consortium led by Ethos Private Equity has acquired a majority stake in the RTT Group for an undisclosed sum. Other shareholders in the consortium are African Development Partners II, a private equity fund advised by Development Partners International and the Government Employees Pension Fund, represented by the Public Investment Corporation.

PRESS RELEASE

A private equity consortium led by Ethos Private Equity, announced today that it has acquired c.80% of the RTT Group for an undisclosed sum. Other key shareholders in the consortium are African Development Partners II, a private equity fund advised by Development Partners International (DPI) and the Government Employees Pension Fund (GEPF), represented by the Public Investment Corporation (PIC). RTT’s current senior management team and a black empowerment staff trust will hold the remainder of RTT’s share capital.

Freddy Moore, RTT Group CEO said:
“My management team and I are delighted to be partnering with our new shareholders. Our shared vision of growth will take RTT to new heights by expanding our offerings, and tailoring these services to specific customer needs. Beyond the excitement of this transaction, our focus remains ̶ as always ̶ on providing excellent service to all our customers.”

Anthonie de Beer, Partner at Ethos Private Equity said:
“With a leading market position and differentiated business model, the consortium considers RTT a very attractive investment opportunity. RTT’s management team is experienced and energised; we look forward to collaborating with them to grow RTT to achieve full potential.”

RTT is Africa’s largest privately-owned parcel distribution company. For over 30 years it has been a market leader in third-party logistics and distribution and a forerunner in break bulk and express distribution.

RTT’s footprint extends across sub-Saharan Africa, comprising over 120,000m2 of warehousing and cross docking facilities. RTT has a combined fleet in excess of 1,200 vehicles and employs close to 5,000 people. Revenues are in excess of R2,5 billion per annum.

Arshad Essa, Partner at Ethos Private Equity emphasised that:
“Our consortium has positioned RTT’s balance sheet to ensure that we are able to fund continued growth for the business.”

Eduardo Gutierrez Garcia, Partner at DPI added:
“RTT is very well positioned to expand its service offering elsewhere in Africa. We are excited about our future work with RTT and its management team to create growth and value.”

PIC’s Chief Investment Officer Dr Daniel Matjila said:
“The RTT transaction has provided PIC with an exciting opportunity to initiate its co-investment strategy and we are very optimistic about the long term partnership with the management team and fellow consortium members”.

-Ends-
________________________________________
Enquiries:
ETHOS Media coordination Chelsea Wilkinson, Head of Corporate Relations +44 (0) 1423 734649
Anthonie de Beer, Partner
Arshad Essa, Partner +27 (0) 11 328 7457
+27 (0) 11 328 7455
DPI Media coordination Meglena Petkova, Lansons +44 (0) 2072 943619
Eduardo Gutierrez, Partner +44 (0) 2073 495030
PIC Media coordination Nomzamo Petje +27 (0)12 742 3412
Thiru Pather, Fund Principal +27 12 742 3548
RTT Freddy Moore, Group CEO
PA: Merieke Koen +27 (0) 11 552 1000
+27 (0) 11 552 1098

About Ethos
Founded in 1984, Ethos Private Equity is a leading South African private equity fund manager. With 30 years of successful investing, our strategy is time-tested and proven across a range of economic and political cycles. Independently owned and managed by its investment professionals, Ethos is a management-driven firm whose interests are strongly aligned with those of our stakeholders.

Ethos takes an active ownership role in its portfolio companies, utilising proven value creation strategies to generate superior and consistent returns for investors. Our core premise is that the businesses into which Ethos invests are stronger, more robust, more sustainable and more valuable on exit than they were prior to Ethos’ ownership.

Ethos is currently investing Ethos Fund VI with c.R7.6bn in commitments. This Fund focuses on control acquisitions, growth and expansion capital in medium-to-large businesses in South Africa and selectively in sub-Saharan Africa.
www.ethos.co.za

Ethos Private Equity, 35 Fricker Road, Illovo, Johannesburg 2196, SOUTH AFRICA
Chelsea Wilkinson, Head of Corporate Relations, T: +44 1423 734649 E: cwilkinson@ethos.co.za

About DPI
Development Partners International LLP (“DPI”) together with its associates is a leading pan-African private equity group founded in 2007 to source, implement and manage private equity investments in Africa.

DPI’s team has extensive hands-on private equity and investment experience across Africa since 1990, with combined African investment experience of over 80 years. DPI combines a value investing orientation with a disciplined, process-led investment style, uncovering unique and exclusive investment opportunities in rapid growth economies and sectors throughout Africa. DPI is an engaged investor working closely with portfolio companies in order to create value.

DPI currently advises two pan-African private equity funds, African Development Partners I and African Development Partners II.
www.dpi-llp.com

Development Partners International LLP
28 Chelsea Wharf, 15 Lots Road, London, SW10 0QJ, United Kingdom
Eduardo Gutierrez, Partner T: +44 (0) 207 349 5030 E: info@dpi-llp.com

About PIC
Established in 1911, the Public Investment Corporation (SOC) Limited is one of the largest investment managers in Africa today, managing assets of over R1.4 trillion and still growing.
The PIC, a registered financial services provider, wholly owned by the South African Government, with the Minister of Finance as shareholder representative.

The PIC invests funds on behalf of public sector entities, based on investment mandates set by each of these clients and approved by the Financial Services Board (FSB). PIC’s clients are mostly public sector entities including the Government Employees Pension Fund, which contribute 90% of the funds that PIC manages.

The PIC’s goal is to not only meet, but exceed our clients’ expectations and our shareholder’s investment objectives through thorough research, careful risk analysis and stringent compliance practices.

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