July 2015

It has been some time since our last communication and there have been a number of changes in the world of Spirit Capital. Our investment portfolio has changed somewhat and we have been active in the advisory space.

Spirit Capital Investments

Big Box Containers

Big Box Containers

Spirit Capital disposed of its majority shareholding in Big Box Containers to XtraSpace Self Storage in August 2014.

Big Box Containers sells and hires new, refurbished and customised shipping containers throughout Southern Africa, whilst Xtra Space provides self-storage solutions for domestic and business use, flexi offices and express courier and distribution services. The two businesses trade in similar markets and have complementary services / products.

We would like to thank Jasper and his team for their effort, performance and partnership over the years and wish the Big Box Containers and Xtra Space teams all the best for the future.


Multiknit

Multiknit

We are pleased to announce the acquisition of a majority shareholding in Multiknit as of March 2015.

The holding company of Knittex, Sakpro and Multiknit International, Multiknit is a market leader in the manufacture and supply of knitted synthetic shade netting fabrics used in the agricultural, domestic, industrial, civil and mining industries, as well as synthetic knitted and woven bags with a wide range of uses in the agricultural and civil engineering industries. The business exports a wide product range to more than 60 countries worldwide.

The business was acquired from RMB Ventures, Pan African Private Equity and retiring management shareholders. The new shareholding structure saw the introduction of Spirit Capital, additional management shareholders and MIC Capital Partners as a significant BEE shareholder.

We look forward to our new partnership and are excited for what the future holds at Multiknit.


Annique Health and Beauty

Annique

Spirit Capital disposed of its shareholding in Annique Health and Beauty to Bounty Brands, a subsidiary of Coast2Coast Investments in April 2015.

Annique supplies Rooibos based skin, health and body care products through a direct selling initiative throughout South Africa since 1971.

The transaction complements Bounty Brands strategy of acquiring a portfolio of profitable, recognisable brands whilst preparing for a public listing in the medium term.

Our partnership with Ernest and Angelique has been extremely rewarding and we are confident that Annique will continue to grow in the Bounty Brands stable, alongside other direct selling businesses that they have acquired.

We wish all parties the very best.


Corporate Advisory Transactions

Archer Mobile South Africa

Archer Mobile

Archer Mobile South Africa has concluded the disposal of its business operations to Archer Digital as a precursor to the sale by Archer Mobile’s ultimate shareholder of its 100% stake to an international purchaser.

Archer Mobile creates and provides mobile engagement solutions to the financial, government and healthcare industries.

Spirit designed the corporate restructure, assisted in its implementation and was advisor to both parties in the transaction.


Regro Technology

EOH Group, the JSE listed technology services business, has acquired 100% of Regro Technology from its founding shareholders.

Regro offers a comprehensive range of telecommunications products (microwave, satellite and fibre) and related turnkey support services to telecommunications operators and service providers.

EOH had identified the telecommunications industry as an area that its business was under-represented in. The opportunity to offer a number of EOH products and services alongside those to Regro to a blue chip customer base affords EOH the opportunity of fast-tracking its offering to the telecommunications industry.

Spirit served as transaction advisors and negotiated the terms of the transaction on behalf of the vendors.


Birchwood Hotel / Cloversgreen Investments

Birchwood

Cloversgreen Investments have successfully re-negotiated the terms of their relationship with Hospitality Property Fund.

Cloversgreen originally developed the facility from which Birchwood Hotel & OR Tambo Conference Centre operates and sold same to HPF in 2006. Cloversgreen subsequently developed additional facilities adjacent to Birchwood and entered into a co-ownership agreement with HPF in 2011 to combine the collective assets in specified income sharing ratios.

The most recent transaction sees HPF acquiring an additional interest in the adjacent properties from Cloversgreen and a re-negotiated lease and management contract as regards the entire facility.

Spirit served as exclusive transaction advisors to Cloversgreen.


It has been an intensely busy period for us, despite the challenging economic times. Going forward, we shall continue to look at investing in profitable businesses alongside management albeit that our strategy has evolved to include fewer, larger assets.

It’s been a while since we awarded a Foul Hook to anyone and we are eager to return to Scotland (or elsewhere for that matter). If you have any opportunities that might qualify - please let us know.

Best Regards,
Team Spirit

Contact Us
Telephone: +27 (0)10 591 3293