*Private Equity Africa
RMB Corvest and Agile Capital, formerly Zico Capital, have backed the management buyout (MBO) of Feedem Pitseng, a business services provider based in South Africa.
Agile Capital is structuring the deal through its Zico Capital Fund 2, a vehicle closed at approximately $43 million (R500 million) in 2014.
RMB Corvest invests from its own balance sheet. The investor is majority-owned by Rand Merchant Bank, in South Africa.
The capital was used to partially buyout the founders, including operations director Jeremy Webb. Part of the funding has backed the management team’s investment in the deal.
Following the transaction Feedem will be owned by founders, RMB, Agile and management team.
“By partnering with Zico Capital and the management team, we have facilitated the creation of a Black-owned services enterprise and an empowered Management Team,” said Mike Donaldson, director at RMB Corvest. “More than 30% of the business is now specifically owned by Black Women.”
Genevieve Alberts, senior executive at RMB Corvest, also worked on the deal.
Agile was represented by chief executive officer Tshego Sefolo.
Headquartered in Johanneburg, Feedem offers catering services in South Africa targeted to private and public sector clients. The company also offers cleaning services through Cristal Solutions, acquired in 1996, as well as facilities management and consulting services.
Created in 1975, the company employs over 3000 people, as of 2017 and is headed by chief executive officer Johannes Wessels.
Feedem has offices in Johannesburg, Cape Town, Durban, George, Worcester, Port Elizabeth, Rustenburg, Kimberley and Bloemfontein.
Forssman Consulting provided legal advisory services to Agile on the transaction.
Step Consulting was financial advisor to Agile, with Renmere providing tax advisory services