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CCMP Capital Asia buys Waco for ZAR5.4bn

The Asia-focused private equity arm of JP Morgan Partners has acquired the South African building services company in the country’s largest buyout to date.

CCMP Capital Asia, a private equity division of JP Morgan Partners formerly known as JP Morgan Partners Asia, has along with management acquired Waco International, a South Africa-based building services company.
 
Waco International said in a statement that the deal, valued at ZAR5.4 billion (€740 million; $897 million), is the largest private equity deal in South Africa to date.
 
The vendor was South African private equity firm, Ethos Private Equity, which led a buyout of Waco for ZAR2.4 billion in 2000.
 
Waco International said that CCMP Capital Asia (CCMPA) and JP Morgan Partners (JPMP) made the investment through CCMPA’s Asia fund and JP Morgan Partners through its vintage 2002 Global fund.
 
The structure of Johannesburg-headquartered Waco International, its subsidiaries, management and staff is to remain intact, with management keeping a stake in the business. The executive team will continue to be led by chief executive Royden Vice.
 
Stephen King, partner at CCMPA, said in a statement: “Over the last three years, Waco has successfully developed itself into a well established and focused industrial services business…This is our first investment on the African continent and we look forward to rewarding returns.”
 
Vice said that Waco International had been looking to list on the South African Stock Exchange, but “after reviewing CCMP Capital’s offer we had to review that decision. There will be a considerable inflow of foreign capital into South Africa as a result of the transaction.”
 
Waco International is an industrial services company with rental, sales and manufacturing in forming, shoring and scaffolding and relocatable and modular buildings. The company has operations in Australasia, southern Africa and the UK, accounting for 55 percent, 22 percent and 23 percent of revenues respectively.