autovest
feature
new markets D ri v e i n t o
In 2011 private equity firm RMB Corvest picked up a 28 percent stake in South Africa-based automotive services holding company Autovest. The funds raised are helping the firm expand.
By Marie Toms
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Autovest focus automotive
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utovest is the biggest original equipment manufacturerapproved supplier of automotive accessories in South Africa. It was created by Nedbank in 2007 and the first company to be rolled into the Autovest holding was Maxe Stainless Steel. Headquartered in Durban, Autovest supplies automotive accessories through close to 200 franchised fitment centres and a number of dealerships. In addition to Maxe, which is a manufacturer of stainless steel auto accessories, Autovest holds SA Canopy, a producer of vehicle canopies. Kilber Products, Rhino Linings, StarTrek, Auto Armor and Bucco, another canopies maker, are also part of the group, which is eager to expand. In August last year RMB Corvest brought a 28 percent stake Autovest, in a secondary buyout deal from Nedbank Capital Private Equity. The deal value was not disclosed, but it was significant. Autovest has used the funds to good effect, aiding expansion. Autovest’s other shareholders are Collins Private Equity, which is part of Collins Properties, and Imbewu Capital Partners, a black-owned private equity and investment holding company. Management are also shareholders. RMB Corvest said at the time it was backing the company to support further expansion. “We fully support Autovest’s expansion strategy in the automotive sector, and therefore believe that our decision to invest in the company is going to be a positive one,” said RMB Corvest’s Genevieve Alberts. RMB Corvest is a unit of FirstRand Group that invests in medium-sized businesses with a track record of solid performance. Shortly after the RMB deal, CEO Ted Waldburger told Business Day that the group aimed to make acquisitions in the parts and truck and bus sectors. He said in an interview that Autovest www.southafricamag.com
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Autovest focus AUTOMOTIVE
Compass Glass Compass Glass (Pty) Ltd is a wholly-owned subsidiary of the Mazor Group and was established in 2008 in first-class premises at Brackenrite Business Park in Brackenfell , Cape Town. Through diligent and energetic planning and mobilisation, Compass Glass are already a leading provider of architectural flat glass in South Africa and offer a comprehensive service to the Construction, Automotive and Industrial Sectors through a network of branches in George, Port Elizabeth, East London and a state-of-the-art factory in Johannesburg.
We fully support Autovest’s expansion strategy in the automotive sector, and therefore believe that our decision to invest in the company is going to be a positive one
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Compass Glass have assembled a strong team of professional managers, supervisors , foremen and operators with an extensive range of experience in the Flat Glass Industry and the downstream processing of primary float glass into value-added products to service the Regional Market. Our large pool of skills at every stage of our operation ensures that Customers will benefit in terms of quality and service exceeding best expectations and at competitive market-rates.
would also focus on organic growth and that the funds from the purchase of the shareholding would help to accelerate the acquisition strategy. “Although we enjoyed a successful partnership with Nedbank, they were approaching the end of their investment horizon, having been invested in Maxe prior to the inception of Autovest,” he said. Mr Waldburger added that Autovest would acquire businesses that might have become too big for a single person to manage, or where Autovest could provide some financial or purchasing assistance, strategic growth or management opportunities or other resources to a smaller company. And Autovest has delivered, making acquisitions and launching new platforms. Indeed, the first half of 2012 proved to be an exciting one for the Durban-based firm. In June it announced the launch of a new concept in franchised automotive accessory fitment centres branded as Auto Enhance. “Gone are the days when new and used vehicles have to visit multiple suppliers to get their accessories fitted. Auto Enhance is a one-stop shop offering
COMPASS GLASS Pty Ltd Unit A6, Brackenrite Business Park Kruis Rd, Brackenfell TEL: 021 9817785 FAX: 021 9827059
Our Range includes: :::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::::::: :::::::::::::::::::::::::::::::::::::::::: :::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::::::::::::::: :::::::::: ::::::: :::: :::: :::::: ::::::: ::::: ::::::p:::: D:::::: ::::::: ::: ::::::: ::::: :::: : :::: p::tf:::: :: ::::::j:: ::tti:: ::: :::::::::::: ::: ::p:q:::::: ::::::::::::: fi::::.
South Africa’s top OE approved brands including Bucco Canopies, SA Canopy, Carryboy, Rhino Linings, Securi-Lids, Kilber bull bars and roll bars, StarTrek Towbars and Auto Armor vehicle protection products. Auto Enhance will be primarily focused on providing a professional accessory fitment service to the motor dealerships for a range of top quality products, under one roof and thereby minimising vehicle movement and consequent risk of damage.” explained Waldburger. “Ultimately it is our aim to offer more choice, convenience and quality when it comes to accessorising a vehicle. We are extremely excited about the opening of our first two Auto Enhance fitment centres, which have been strategically positioned to service the www.southafricamag.com
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Autovest focus AUTOMOTIVE
greater Durban area”. Auto Enhance opened the doors to its first two pilot fitment centres at their brand new premises in Umhlanga and the newly converted Bucco Pinetown premises in May, with more franchised fitment centres due to roll-out nationally during the course of the year. “The group’s recent acquisition of Auto Armor, with a national footprint of 32 fitment centres, takes the group to, in excess of, 150 franchised fitment centres operating under the SA Canopy, Bucco Canopies, Rhino Linings or Auto Armor brands. This provides the group with a strong national footprint which will support the roll-out plans for Auto Enhance,” said Waldburger. 6
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Auto Enhance is a one-stop shop offering South Africa’s top OE approved brands
This isn’t the end - further expansion is on the cards. “In time Autovest will add further top quality vehicle accessory brands which will complement the Auto Enhance range, essentially making it a true one-stop shop,” Waldburger added. “The launch of Auto Enhance once again emphasizes our desire to invest in growth and although it will require a significant investment from Autovest, we are extremely confident that this will be a successful venture.” The Auto Enhance fitment centres will not only offer the top vehicle accessory brands under one roof, but will also adhere to the highest standards of service, will be fully insured and essentially offer peace of mind to vehicle dealers and owners alike. END To learn more visit www.autovest.co.za.
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BDO House Lower Ground Floor 1 Richefond Circle Ridgeside Office Park Umhlanga Tel: +27 (31) 536 8005 Fax: +27 (31) 536 8012 Email: tedw@autovest.co.za
www.autovest.co.za