Helios exits chemicals distributor to DPI-led consortium
Solevo Group, an African distribution platform for specialty chemicals, today announced its acquisition by Development Partners International (DPI), an investment firm focused on Africa, alongside minority co-investors South Suez and European development finance institution, DEG. The group of investors, led by DPI, are acquiring 100% of the business from Africa-focused investment firm Helios Investment Partners. All regulatory approvals for the transaction have been granted and the deal closed on 18 April 2023.
Helios, along with global investor Temasek, acquired Solevo in 2017 through the corporate carveout of Louis Dreyfus Company’s (LDC) African inputs business. Solevo has since become an important facilitator in the continent’s push for agricultural self-sufficiency and local industry stimulation. The company has 23 distribution sites and a network across eight countries. Under Helios’ ownership, Solevo has expanded its presence in the specialty chemicals distribution for life sciences and industrial segments.
Solevo provides a one-stop-shop for various inputs and chemicals, including those for agriculture. Other life sciences segments it serves include food and beverages, home and personal care, and industrial segments such as water treatment, mining and energy, construction, and packaging.
Africa’s specialty chemicals market is rapidly expanding, driven by urbanisation, industrialisation, a fast-growing emerging middle class, and rapid population growth. These trends are boosting demand for specialty chemical products in key life sciences and industrial sectors across the continent, as evidenced by the 5-15% year-on-year growth seen in Solevo’s main segments. In collaboration with new partners DPI, Solevo will focus on continuing its growth strategies, including product and market expansion, as well as digitalising its supply chains to consolidate its position as a distributor of critical specialty chemical products in Africa.
Helios was advised by Akin Gump as legal counsel, Rabobank and Rothschild acting as financial advisors and KPMG providing financial due diligence. DPI was advised by Norton Rose Fulbright as legal counsel, BNP Paribas as financial advisors, PWC acting as financial due diligence and DLA Piper providing legal due diligence advice.