The deal is valued at ZAR 4.2 billion (US$285m) and will be financed through a combination of debt and equity.
The deal is subject to further conditions precedent (including the approval of the Competition Commission) and is expected to be concluded in June 2022.
“We always knew to successfully execute on a transaction of this magnitude, not only would it be important to deliver a value unlock for shareholders, but also speed and certainty of execution, which we believe was what made the OMPE offer very compelling to Long4Life.”
The transaction is a significant one for OMPE Fund V, presenting a unique opportunity to acquire three businesses in one transaction.
OMPE will delist Long4Life, unbundle the three underlying segments, being Holdsport, Chill & Inhle Beverages and the Personal Care & Wellness segment into OMPE Fund V, to be managed as separate businesses with their own management teams.
“Our offer was also very compelling to underlying management, which enables the underlying teams to invest alongside us directly in their own businesses and therefore be more in control of their own destiny,” Chumani added.
“Lastly, from an OMPE perspective, the deal represented an attractive opportunity to acquire high-quality assets which we like and have followed for a long time, whilst partnering with strong management teams with which we are aligned.”
The OMPE team will partner with the management teams on an agreed vision and strategy, as well as provide capital, perspective, stewardship and ESG disciplines.
“As OMPE we have been around for more than two decades and we were able to bring our extensive experience to bear in executing swiftly on a transaction that had its share of complexities, as they always do,” said Jacci Myburgh, Co-Head of Old Mutual Private Equity.
“This deal represents a significant milestone for our franchise and could be viewed as a landmark transaction in the context of South African private equity, which we are very pleased about.