South Africa: Kholo Capital and Maia Capital in building materials deal
The Kholo Capital Mezzanine Debt Fund I and Maia Capital Partners have provided about $14 million funding to Catapult Group.
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The Kholo Capital Mezzanine Debt Fund I and Maia Capital Partners have provided R250 million (about $14 million) mezzanine debt funding to Catapult Group. The funding is intended to support growth capital expenditure and to refinance a portion of existing senior debt, thereby enhancing cash flow flexibility as the company enters its next growth phase.
Catapult is a South African manufacturer and distributor of specialised building products, with a strong presence in the commercial, industrial, and residential real estate sectors with a 3,000-store retail distribution footprint.
Catapult has expanded in recent years through acquisitions, including building materials companies Everite and Swartland. Everite manufactures a range of fibre cement products under the Nutec brand, including ceilings, cladding, roofing components, façades, windowsills, and lightweight autoclaved aerated concrete bricks. Swartland produces wooden window frames, doors, garage doors, skirtings, cornices, and lightweight aluminium-alloy frames, as well as insulation and awnings.
Zaheer Cassim, managing partner and founder at Kholo Capital, remarked: “We are delighted to be part of this growth and refinancing transaction with the Catapult Group. Our R250 million investment will assist the Catapult Group with its growth objectives and provide additional financial flexibility which positions the company for sustained growth and further value creation. This growth will in turn create new jobs over the investment period, which is a key focus of the Kholo Capital investment mandate.”
Mokgome Mogoba, managing partner and founder at Kholo Capital, observed: “Catapult is supported by a strong management team and established equity sponsors with solid net asset bases and extensive industry expertise. The business has consistently delivered strong earnings performance, supported by long-established brands, highly recognizable building products, and a dominant market share in its key segments. We look forward to providing strategic input, adding value and propelling the Catapult Group to achieve its growth objectives.”
Tshandu Ramusetheli, CEO of Maia Capital, said: “This significant investment highlights Maia Capital’s commitment to fostering sustainable development, particularly in one of our key impact themes of access to affordable, quality housing. By supporting Catapult, we are taking meaningful steps to ensure that all individuals have access to essential housing and services. This partnership exemplifies our belief that impactful investments can drive both economic growth and social progress.”
Robin Vela, chairman of Catapult Group, commented: “The support from Kholo Capital and Maia Capital will enhance our ability to deliver long-term value to our customers, employees, and shareholders. Importantly, the investment will also facilitate job creation and contribute positively to the broader South African economy, an outcome we are deeply committed to. We extend our gratitude to Kholo Capital, Maia Capital, our equity partners and our management team for their unwavering belief in Catapult’s potential. Together, we are well positioned to achieve our strategic objectives and unlock sustainable growth.”
Norton Rose Fulbright acted as legal counsel to Kholo Capital and Maia Capital.
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