Capitalworks in South African industrial deal

Private equity firm Capitalworks has taken a significant minority stake in South Africa’s Continental Compounders and Continental Engineering Compounds.

Continental is South Africa’s largest plastics compounder. From its two manufacturing facilities in KwaZulu-Natal, the business creates and makes rigid and flexible PVC and thermoplastic elastomer compounds. It services markets in South Africa, sub-Saharan Africa and beyond.

Continental supports South Africa’s automotive sector by supplying essential engineering polymers such as polypropylene, polyolefin and nylon. The South African Automotive Masterplan 2035 calls for such components to be manufactured at home.

Capitalworks will share ownership with the original founders of the company. There will now also be an opportunity for employees to acquire an equity interest.

Commenting on the transaction, Capitalworks principal Shaun Frankish, said: “Continental has a great future. It has almost 25 years of history, industry-leading skills and strong personal relationships with its customers.”

Continental’s CEO, George Dimond said: “I am excited for Continental. This transaction catapults us forward. The partnership with Capitalworks means we can be serious about growth. I am proud that the whole team at Continental will have a share in our future success.”

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