Le-Sel Research, one of the largest home and personal care contract manufacturers on the African continent, announced on 8 September that the Industrial Development Corporation (IDC) will acquire a 25.1 per cent shareholding in the company.
The total investment from the IDC amounts to R157.5 million in the form of equity and debt funding. Trinitas Fund General Partner will also increase its funding to Le-Sel.
Focus on the specifics
Following a detailed and thorough due diligence process, the IDC approved its investment in Le-Sel to support future growth and respond to working capital challenges of the company. The Frodsham Family, which is the original founder of Le-Sel, remains fully committed through the retention of its investment and with continued involvement in the management of the business.
Trinitas Fund General Partner will also retain representation on the board and has agreed to invest a further R10 million in the business. The IDC will have the right to representation on the board of the company and will be involved in ensuring the delivery of its strategic initiatives through management.
A major industry player
Le-Sel produces more than six million units of personal care products every month for many local and multinational companies. According to the company, these products can be found in every retailer and are used every day by millions of people in South Africa and on the African continent. Employing more than 500 people directly, Le-Sel also impacts the lives of many more people at its various suppliers throughout South Africa.
The IDC’s investment in Le-Sel signals its long-term intention to develop a globally competitive consumer products manufacturing industry in South Africa, to serve both local and multinational brand owners in the home and personal care segments.
It will also support local manufacture by multinational brand owners, facilitate regional integration by unlocking latent manufacturing capacity to promote the export of finished goods and create new direct and indirect jobs.