Kenya-based private equity firm Catalyst Principal Partners has announced acquisition of majority stake in Tanzania of a heavy equipment rental and logistics firm, EFFCO. Catalyst Principal Partners invests amounts of between US$5million - US$20million into deals with an average investment period of between 4 to 6 years.
The management-backed buyout is consistent with Catalyst's strategy of investing in emerging companies within high-growth sectors across eastern Africa. "We see great growth potential in EFFCO," Catalyst Managing Director Rajal Upadhyaya said.
Acquisition of EFFCO is the fourth deal Catalyst Principal Partners has announced in the region since it successfully raised Sh10.8 billion private equity fund, focused on investing in eastern Africa.
The private equity firm has also invested in ChemiCotex, a leading personal and oral care manufacturer, and Chai Bora, the largest tea packaging firm, both based in Tanzania. The firm has also invested in Ethiopia's Yes Brands, the leading mineral water bottling company in Ethiopia.