Vantage Capital invests $25m in water tank manufacturer
Vantage Capital, an Africa-focused mezzanine debt fund manager, has made an investment into Aquasantec International, a manufacturer and distributor of water tanks, pipes and related products, addressing water, sanitation and hygiene needs across the East African region.
Vantage invested $25 million into Aquasantec in June 2023, in the form of mezzanine debt and ordinary equity, acquiring a controlling shareholding in the group as part of a leveraged management buy-out. The founding Shah family, Ramco Group (a diversified conglomerate in Kenya) as well as Terra Mauricia (a publicly listed conglomerate in Mauritius) disposed of their shareholding in the group as part of the transaction.
Aquasantec was originally founded in Kenya (trading as Kentainers Limited) over 30 years ago by Chandulal Shah and family. Since then, the business has grown organically, becoming a household name across the region. With the recent addition of a new factory in Nairobi, alongside factories in Uganda, Rwanda and Zambia, the business is poised to continue its mission of securing the water needs of East Africa.
Aquasantec’s core product range includes various sizes and types of water storage and supply products including water tanks, underground tanks, drums and pipes. Other products include septic tanks, grain silos and pallets. The group has a moulding capacity of over 12,000 tonnes annually and an extrusion capacity of over 15,000 tonnes annually.
Roshal Ramdenee, associate partner at Vantage Capital said, “Vantage is thrilled to announce its investment into Aquasantec International. We see water security as a core priority for the African continent and look forward to supporting a strong management team in achieving their ambitions of delivering innovative water security solutions across the continent.”
Warren van der Merwe, managing partner at Vantage Capital added, “Vantage is proud to back a successful company with such a strong social impact and a management team which has a proven track record of building Aquasantec into the leading regional player in its sector. We share management’s vision to capitalise on Aquasantec’s market-leading brands and new factory premises to launch its next phase of growth.”
Caroma Consulting acted as financial advisor to the transaction, Coulson Harney and Werkmans acted as legal counsel for Vantage and management. Other advisors to the transaction included Ernst and Young, Webber Wentzel and IBIS Consulting.
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