SOUTH AFRICA – RMB Corvest, a private equity firm, has announced that it will exit its investment in Plush Professional Leather Center which is subject to competition commission of South Africa approval.
Plush specialises in suede, leather and home care products. The business has been operating since 1966 and has growing export profile across the Southern African Development Community (SADC) region.
The current transaction will see Adcock Ingram Healthcare Proprietary Limited acquire 100% of the business.
“We believe that Adcock Ingram will be a fantastic custodian of Plush, its brand, employees and reputation. Under Adcock Ingram’s leadership we believe Plush will continue to show good growth and retain its quality product offering,” said Rob Grieve, an executive at RMB Corvest.
Adcock Ingram recently announced that all conditions precedent, including regulatory approval, for its acquisition of Plush Professional Leather Care, had been met and the acquisition is now unconditional. The final closing of the transaction was to take place before the end of May.
Plush will operate as a separate company within the Adcock group, reporting into and managed within the consumer division.
Adcock announced in March that, in line with its strategy of pursuing value-adding acquisitions, particularly in less-regulated areas of the market, it had concluded a share purchase agreement to acquire Plush − a 55-year-old South African brand.
Although the company’s roots lie in shoe and leather care products, over the last ten years it has successfully diversified its product offering into a range of home care and cleaning products that now make up the majority of its revenue.
RMB Corvest originally invested in Plush in 2001, and subsequently I 2010, a new management team was introduced to the business, who then invested alongside RMB Corvest to recapitalise the business.
“As a specialist PE player, we understand the complexities of identifying and acquiring attractive small and medium business, facilitating adept management teams to acquire equity alongside us and then supporting management in growing the business to the next level,” said Grieve.
“Two decades after our initial investment, the exit of RMB Corvest allows for the business to continue to thrive, whilst realising a significant return from RMB Corvest. To this end, we thank the management in particular Steve and Heide de Villiers and Vera Elliot, for a fantastic partnership.”
Steve de Villers, CEO of Plush, says the transaction will ensure continued services and offerings to customers.
“With new opportunities opening up, particularly in the SADC region, the company is well-positioned to capitalise on these opportunities,” noted de Villers.
