PE Firms Acquire Tanzania’s Chemi & Cotex

A group of private equity investors, including Direct Principal Investments, a division Britain’s HSBC Plc, have acquired a majority interest in Tanzania’s Chemi & Cotex Industries, Reuters reported. Satya Capital and Kenya-based Catalyst Principal Partners are part of the investor consortium. Financial terms of the deal were not released. Chemi & Cotex manufactures toothpaste, cosmetics and food products.

(Reuters) – A grouping of private equity funds that includes Direct Principal Investments, a division Britain’s HSBC Plc said on Wednesday it had acquired a majority stake in Tanzania’s Chemi & Cotex Industries Limited.

The other two partners are Satya Capital and Catalyst Principal Partners. The group declined to disclose the value of the deal or the exact percentage shareholding acquired.

“The three partners will have over 50 percent shareholding. We invest between $5-15 million for any deal,” Paul Kavuma, chief executive officer at Catalyst told Reuters.

Catalyst, a Kenyan based fund said it had completed the first phase of fundraising for its $100 million eastern Africa focused private equity fund, Catalyst Fund I, with $70 million channeled to the eastern African market.

According to Satya’s website, the firm targets investments of between $20m and $50 million while HSBC’s website said its equity and equity-linked investments range from $10-50 million.

Chemi & Cotex Industries Limited, is fast moving consumer goods business in east Africa’s second largest economy, producing toothpaste, cosmetics and food products.

(Reporting by Beatrice Gachenge; Editing by Richard Lough and Elaine Hardcastle)