Private Equity | Carlyle to buy South Africa’s promotional products supplier

JOHANNESBURG, Capital Markets in Africa: Private equity firm Carlyle Group LP said it will buy a majority stake in South African promotional products and clothing maker Amrod and plans to expand the business in other markets.

The Washington D.C.-based private equity house will fund the investment through its Carlyle Sub-Saharan Africa Fund, while the three founders of Amrod will reinvest alongside Carlyle, the firm said in a statement.

Carlyle said it expects the transaction to close in 2016, subject to regulatory approvals and gave no further financial details.

Like other private investors, Carlyle has been targeting rapid economic growth and growing consumer spending in sub-Saharan Africa, however a weak economy and falling currencies have now taken the gloss off a decade of optimism.

 

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