Elso Holdings gets equity firm backing

In a boost to government’s ‘growth at home’ industrialisation drive, private equity fund manager Eos Capital yesterday announced its imminent acquisition of local manufacturer Elso Holdings Namibia.
While pending Namibia Competition Commission (NaCC) approval, Eos Capital said it had acquired a majority stake in Elso Holdings, making this the first such investment on behalf of its special purpose vehicle (SPV), the Allegrow Fund.
Started by local entrepreneur Renè Rusch in 1998, Elso Holdings specialises in environmentally-friendly manufacturing of bio-degradable, non-toxic cleaning liquids and powers, as well as tissue paper products and cleaning equipment.
It currently operates seven branches across the country, employing 120 people in total.
Eos Capital is a recently founded private equity fund manager, led by former Managing Director of Old Mutual Africa Johannes !Gawaxab as executive chairman.
The company’s Allegrow Fund, also a private company, raised N$450 million in its first close in 2015, and is mandated to invest these funds into companies considered to have potential for rapid growth.
Eos Capital’s objective with the new acquisition is to place Elso Holdings’ enviro-friendly, bio-degradable products within easier reach of Namibians and consumers within the larger SADC Region, the company said in a statement issued yesterday.
“Our aim is to create rapid growth for the companies we invest in, while due consideration is given to the risks involved in such an investment,” Eos Capital Chief Investment Officer Ekkehard Friedrich, said.
“For these reasons, Elso is the ideal candidate for our Allegrow Fund.”
All current staff from Elso Holdings Namibia are to be retained, the company said, while a new Chief Operating Officer (COO) is to be appointed to “help alleviate some of the workload expected from the growth”.
Founder Rusch has in the meantime been designed the role of Chief Executive Officer (CEO), and is to focus more on strategic issues going forward.
Elso Holdings has stated its intent to increase its supply to wholesalers, retailers, guesthouses, hotels, businesses and government ministries across the country.
Through its takeover by Eos Capital, it said it would benefit through injection of capital, new operating models, as well as governance, strategy and management support.

DENVER ISAACS