PRESS OFFICE: Phatisa
Phatisa has invested in Torre Equipment Africa Limited (TEA), a pan-African equipment distributor with operations in Côte d’Ivoire, Ghana, Liberia, Sierra Leone, Cameroon and Botswana, among others. Torre Equipment Africa, a subsidiary of JSE-listed Torre Industries Limited, specialises in the supply of branded capital equipment, distribution of high-quality spare parts and the delivery of reliable repair and maintenance services.
‘TEA is about to commence on an exciting journey with Phatisa as the business continues to grow from strength-to-strength. Our accomplishments are a testament to our dedicated staff, loyal customers and supportive shareholders,” stated Stephen Smithyman, CEO of Torre Equipment Africa. Adding that “Phatisa’s investment into TEA will help support the expansion plans across the Group and allow us to deliver on our objectives in becoming the best supportive dealership on the continent.”
This investment comes on the heels of the recent appointment of TEA as the official distributor of Case IH in Côte d’Ivoire, a global leader in agricultural equipment, and amid discussions to expand to Cameroon and other west African countries, thus increasing their agricultural footprint within the region.
“Phatisa’s deep expertise in agriculture brings capital and ability to TEA and we are excited to work together in driving value creation through strategic ambition, expanding our product offering and ensuring we continue delivering customer service excellence,” added Charles Pettit, CEO of Torre Industries.
The Phatisa deal team, led by Joseph Bergin, Senior Partner, was attracted to the opportunity of investing into TEA as the business has strong growth prospects and a highly-capable and experienced management team. Phatisa will be able to assist TEA in unlocking new opportunities and expanding sales within the agricultural sector, where we have deep knowledge and specialists in the palm oil, cocoa and sugar industries.
Valentine Chitalu, Phatisa’s Group Chairman concurred: ‘Today’s announcement, the ninth African Agriculture Fund portfolio company, represents a significant development for the Fund and Phatisa alike, as we continue to execute against our investment strategy and demonstrate our commitment to making strategic investments to support the long-term growth of Africa’s agriculture and food value chains. This transaction enables the further expansion of our inputs platform and Torre’s reach, while leveraging well-established business in sub-Saharan Africa, regional leadership expertise and strong brand momentum in the region.”
Phatisa is an African private equity fund manager, operating across sub-Saharan Africa, with offices in Mauritius, South Africa, Zambia, Kenya, and Ghana, as well as London. The firm has two sector-specific funds under management, totalling more than US$285 million, focused on food and affordable housing. Phatisa comprises a team with a significant track record of managing private equity funds and businesses throughout the continent.
Phatisa’s African Agriculture Fund has committed investments in excess of US$135 million, from Sierra Leone in West Africa to Mauritius, East Africa and 13 other countries in between. This reflects a total of eight portfolio companies across diverse sectors: primary farming, palm oil, processing, inputs, mechanisation, fertiliser, protein production and FMCG beverages. Phatisa also introduced an eastern and southern African investment initiative in response to the ever-increasing housing shortage – the Pan African Housing Fund (PAHF). The US$41.95 million Fund commenced operations during Q1 2013 and has concluded three investments to date.
At the heart of Phatisa is development equity, as embodied in the unique formula of DevEq = PAT * x + i 2 ™; a balanced blend of private equity and development finance – striving to build sustainable assets on the ground; ensuring best possible returns for investors, including the community in which these operate.