– Phatisa achieves a successful partial exit of Kanu Equipment Limited (Kanu), and raises a further US$ 20 million of expansion capital via Adenia to accelerate Kanu’s aggressive growth plan
Kanu specialises in the supply of branded capital equipment, distribution of high-quality spare parts and the delivery of reliable repair and maintenance services. Under Phatisa’s ownership, Kanu has been driving an expansion strategy across sub-Saharan Africa and the business now operates in 13 countries, servicing the agriculture, construction and mining industries. The business has also demonstrated tremendous organic growth by winning new customers attracted to Kanu’s internationally recognised equipment brands (Liebherr, Bell Equipment, Case IH) and superior levels of customer service and support.
‘Phatisa has been an active and dynamic investor that shares Kanu’s vision of becoming a truly pan-African equipment dealer. As the business continues to evolve, the additional capital will enable the business to deliver this vision,’commented Stephen Smithyman, Chief Executive Officer – Kanu.
Kanu’s premium equipment brands and customer focus differentiate the business from its competitors. This has given the business a strong proposition in its incumbent markets as well as facilitating geographic expansion into exciting new territories including Kenya, Tanzania and Namibia.
Joseph Bergin, Senior Partner and Phatisa deal team leader: ‘Over a short period of time, we have helped Kanu transform into a dominant player in the African equipment industry. We see this co-investment as not only a demonstration of Kanu’s formidable expansion but also a commitment to working together with a highly reputable and value-adding investor to deliver our aggressive growth plan.’
Stuart Bradley, Joint Managing Partner, Phatisa: ‘It is encouraging to be able to conclude another co-investment and demonstrate the benefits of collaborating with other investors. The partial exit endorses our initial investment thesis in Kanu and this is a good signal for potential investors in our Phatisa Food Fund 2 looking for opportunities of this kind.’
Standard Bank and Bowmans provided corporate finance and legal advisory services to Phatisa and Kanu Equipment.