Issued by Mattison Public Relations
Aureos West Africa Fund (AWAF), has made its first investment in Senegal in the Francophone zone in West Africa. AWAF has committed US$2.86 million to Compagnie Sahelienne d’Industries, which trades as Matforce, a car dealership and energy equipment provider.
Emerging markets private equity specialists Aureos Capital establised AWAF to invest in small and mid-sized companies in the West Africa region.
AWAF has acquired a 10% stake in the company and provided a US$2m loan guarantee facility to enable Matforce to secure the equivalent loan funding in local currency (Franc CFA). The investment is intended to finance the increased working capital needs of the company as a result of fast growth in its line of business.
Matforce has over 30 years experience of car dealerships and providing water and energy equipment, additionally offering after sales services for these activities. It represents well-known brands such as Hyundai, Mazda, Cummins and Alfa Laval. The company was bought out from Unilever in 1989.
Matforce, through its provision of power solutions to companies, is benefiting from the expansion of the mining, refinery and telecoms sectors in Senegal. The company is also a key part of regional and local development programmes such as rural electrification.
Jacob Kholi, Managing Partner of AWAF has said: “As our first transaction in Senegal, the investment in Matforce is strategic to the Fund. It is a well managed company and a leader in its business segment. It also gives us the opportunity to partner with a visible company in Senegal that is contributing to the economic development of the country.”
“Matforce has started to roll out its services and expertise to other countries in the region, thus providing a good fit into Aureos’ model for investing in companies that can become regional forces.”
Jacques Conti, Chairman of the Board of Directors of Matforce comments: ‘‘The shareholding profile and credibility of our company is clearly enhanced by AWAF’s involvement. In the future this may mean access to the wider pool of funds from the Aureos family to help Matforce achieve its goal of profitable expansion across the sub-region to become a sub-regional player. It is the beginning of a long-term relationship.’’
To date, AWAF, with US$50 million committed capital, has made nine investments in sectors such as manufacturing, oil services, financial services, FMGC, real estate development, ICT and general services across the West Africa Region.