host posted on January 26, 2011 18:20
Vantage, RMB Private Bank invest R135m in TrenStar
Private equity mezzanine group Vantage Capital has invested R85 million in TrenStar, a South African-based returnable packaging company.
The funds will be applied to expansion and replacement capital and to introduce black empowerment ownership. Party to the deal is RMB Private Bank (a division of FirstRand Bank Limited), which has provided R50 million in senior debt, raising the total funds committed to the transaction to R135 million. Vantage and RMB were introduced to TrenStar by Fairbridge Capital, who was the debt arranger in the transaction.
TrenStar is a national returnable packaging group and is the largest provider of its kind in the automotive sector. The company provides services to most of South Africa’s automotive manufacturers, as well as to industries that include fruit juice production, blood service, oil, lubricants and gas.
TAP du Plessis, CEO and shareholder in TrenStar commented that “the additional funding raised through this transaction will allow TrenStar to enhance its offering and service to current and future clients to an even higher standard. TrenStar have experienced enormous growth and support over the past years.”
The mezzanine funding package provided by Vantage Capital did not include a private equity sponsor. This “sponsorless” format allowed management and the black empowerment partner to acquire 100% ownership of the business. Colin Rezek, founding partner at Vantage Capital says “what excites us is the move by SA auto manufacturers, TrenStar’s largest clients, to increase local production content which is supported by the government’s Automotive Production and Development Programme.” Vantage Capital will partner with senior management to remain actively involved in company strategy.
TrenStar is a technological leader in the logistics sector offering “track and trace,” RFID and barcode technology, all of which enables superior supply chain management and just-in-time inventory capabilities.