Maia Capital Partners (www.maiacapital.co.za) and Kholo Capital Mezzanine Debt Fund I (www.kholocapital.com/) announced that they have provided R250 million mezzanine debt funding to Catapult Group (“Catapult”) to fund growth capital expenditure and to refinance a portion of existing senior debt to create cashflow headroom for the business as it embarks on its next growth phase. Catapult is a leading South African manufacturer and distributor of specialized building products, with a strong presence in the commercial, industrial, and residential real estate sectors with a 3,000-store retail distribution footprint.
Catapult expanded in the past few years through strategic acquisitions, including the acquisition of Everite and Swartland businesses. Everite is known for its comprehensive range of Nutec products. The Nutec brand is Everite’s proprietary fibre cement product line, encompassing ceilings, cladding, roofing (i.e., fascia boards, barge boards and roofing slates), facades, windowsills, building columns and lightweight Autoclaved Aerated Concrete (“AAC”) bricks. Swartland is a market leading manufacturer of quality wood window frames, doors, garage doors, skirtings, finishes, par awnings, XPS Insulation, cornices and lightweight aluminium-alloy window frames and doors.
Tshandu Ramusetheli, CEO of Maia Capital, said: “This significant investment highlights Maia Capital’s commitment to fostering sustainable development, particularly in one of our key impact themes of access to affordable, quality housing. By supporting the Catapult Group, we are taking meaningful steps to ensure that all individuals have the opportunity to access essential housing and services. This partnership exemplifies our belief that impactful investments can drive both economic growth and social progress.”
Zaheer Cassim, Founder and Managing Partner at Kholo Capital, remarked: “We are delighted to be part of this growth and refinancing transaction with the Catapult Group and Maia Capital. Our R250 million investment will assist the Catapult Group with its growth objectives and provide additional financial flexibility which positions the company for sustained growth and further value creation. This growth will in turn create a number of new jobs over the investment period, which is a key focus of the Kholo Capital investment mandate.”
Mokgome Mogoba, Founder and Managing Partner at Kholo Capital, observed: “Catapult is supported by strong equity sponsors, the Lonsa Group and Legacy Africa Capital Partners, both of whom are established investors with strong net asset bases and extensive industry expertise. Catapult has consistently delivered strong earnings performance, supported by long-established brands, highly recognizable building products, and a dominant market share in its key segments.”
Robin Vela, Chairman of Catapult Group, commented: “The support from Kholo Capital and Maia Capital will enhance our ability to deliver long-term value to our customers, employees, and shareholders. Importantly, the investment will also facilitate job creation and contribute positively to the broader South African economy, an outcome we are deeply committed to. We extend our gratitude to Kholo Capital, Maia Capital, our equity partners and our management team for their unwavering belief in Catapult’s potential. Together, we are well positioned to achieve our strategic objectives and unlock sustainable growth.”
Norton Rose Fulbright acted as legal counsel to Maia Capital and Kholo Capital
Zaheer Cassim, managing partner and founder at Kholo Capital (left) and Tshandu Ramusetheli, CEO of Maia Capital