African distributor of specialty chemical compounds Solevo acquired by DPI-led consortium

Solevo Group (“Solevo”), a number one African distribution platform for specialty chemical compounds, right now introduced its acquisition by Improvement Companions Worldwide (“DPI”), an funding agency centered on Africa, alongside minority co-investors South Suez and European growth finance establishment, DEG.

The group of buyers, led by DPI, are buying 100% of the enterprise from Africa-focused funding agency, Helios Funding Companions (“Helios”). All regulatory approvals for the transaction have been authorised and the deal closed on 18 April 2023.

Helios, alongside international investor Temasek, acquired Solevo in 2017 by the company carveout of Louis Dreyfus Firm’s (“LDC”) African Inputs enterprise, a number one international commodities service provider. Underpinned by over 75 years of heritage and model recognition in Africa, Solevo has established itself as a key enabler within the continent’s drive for agricultural self-sufficiency and the stimulation of native business. With 23 distribution websites, a deep community throughout eight international locations, and a staff of market-leading specialists, Solevo is recognised as a trusted distribution accomplice for patrons throughout the continent. Since founding and underneath Helios’ possession, the corporate has remodeled into a number one distributor of specialty chemical compounds throughout an important life sciences and industrial segments.

Solevo provides a singular one-stop-shop for a spread of inputs and chemical compounds together with agriculture, additionally offering help for over a million small holder farmers, serving to them to safe their livelihoods by elevated yields and better crop safety, leading to improved meals safety and local weather resilience throughout Africa. Different life sciences segments embody meals and drinks, dwelling and private care, and industrial segments corresponding to water remedy, mining and vitality, development, and packaging: all important areas chargeable for driving Africa’s financial development.

Africa’s specialty chemical compounds market is quickly rising, pushed by secular traits in the direction of urbanisation, industrialisation, a fast-growing, rising center class, in addition to speedy inhabitants development. These traits are accelerating the demand for specialty chemical merchandise in key life sciences and industrial sectors throughout the continent, mirrored within the 5-15% year-on-year development seen in Solevo’s key segments. Working with new companions, DPI, Solevo will give attention to persevering with to ship on its formidable development methods of product and market enlargement, along with digitalising its supply-chains, to consolidate its place as Africa’s “accomplice of selection” and main distributor of important specialty chemical merchandise.

Joris Coppye, Chief Government Officer of Solevo mentioned: “With Solevo firmly established as a pacesetter in its markets, we’re extremely effectively positioned for the subsequent stage of our evolution: to turn out to be the go-to distributor of specialty chemical compounds in Africa, serving important sectors throughout the life sciences and industrial segments. By accelerating our digitalisation efforts and specializing in reaching new markets, we’ll empower extra companies, farmers, and communities throughout the continent. The partnership with Helios has been extremely profitable and fruitful, with important investments in folks, operations, and processes. Solevo has benefited from Helios’ experience in efficiently executing massive company carveouts and driving development by industrial excellence. With the help of DPI, who convey a hands-on, partnership method, entrepreneurial spirit, and deep market experience, we now have a singular alternative to construct on the achievements of the final 5 years underneath Helios’ possession, broadening our potential to serve our prospects and communities, and constructing the foundations for food-security throughout the African continent.”

Nimit Shah, Companion at Helios Funding Companions commented: “Throughout our possession, Helios is proud to have labored with Solevo to execute a worth creation technique that resulted in robust monetary, social, and environmental efficiency. It persistently achieved double digit annual working revenue development charges pushed by income development and margin enlargement. The profitable sale of Solevo underscores Helios’ funding technique of buying and constructing market-leading, diversified platform corporations working within the core financial sectors of key African international locations, with an emphasis on portfolio operations as a creator of worth. We stay up for following Solevo’s continued success.”

Babacar Ka, Companion at Improvement Companions Worldwide mentioned: “The supply of specialty chemical compounds to SMEs and huge companies throughout Africa is a key element of unlocking the continent’s potential by supporting the expansion of key life sciences and industrial sectors. Underneath Joris and his management groups’ efficient stewardship, Solevo has firmly established itself as a pan-African distribution chief, championing corporations and native industries throughout the continent, together with native farming communities, equipping them with new expertise and the hands-on help they should scale their companies. We’re excited to work with Joris and his skilled administration staff, to speed up the enterprise’ transformation, because it scales into new markets throughout the continent.”

Helios was suggested by Akin Gump as authorized counsel, Rabobank and Rothschild appearing as monetary advisors and KPMG offering monetary due diligence. DPI was suggested by Norton Rose Fulbright as authorized counsel, BNP Paribas as monetary advisors, PWC appearing as monetary due diligence and DLA Piper offering authorized due diligence recommendation.

Associated