RMB Ventures and RMB Corvest have backed the buyout of South Africa-based water tanks manufacturer JoJo Tanks, from a group of investors led by Investec Principal Investments.
Oppenheimer family’s Stockdale Street private equity vehicle and Pan-African Capital Holdings’ (PACH) Pan-African Private Equity Fund 1 also invested in the deal. The transaction was been structured as a management buyout.
The financing will enable the company to continue its growth. The new investors believe the sub-sector’s growth drivers have evolved from purely agricultural applications to much broader domestic use. About six of South Africa’s 14 million households do not have access to in-home water reticulation and the investors believe the community would benefit significantly from residential rainwater harvesting.
The investing consortium also expects growth in the space to be bolstered by regional climatic and infrastructural constraints that hinder access to water. Demand in metropolitan areas is set to be boosted by an increasing environmental awareness, while government, municipal and NGO initiatives are driving the primary driver in rural areas.
“We see JoJo Tanks as one of the key enablers of South Africa’s challenge to preserve water, a limited resource of which greater harvesting and storage is paramount,” said Dr Zuko Kubukeli of Pan-African Capital Holdings.
Headquartered in Acornhoek, JoJo Tanks is a manufacturer of roto-moulded polyethylene tanks used for rainwater harvesting and general liquid storage. The company’s products are used predominantly in the agricultural, domestic and chemical industries for the storage of water, fertilizers, chemicals and any other liquid. JoJo also offers customised molding services.