RMB advises Pepkor on sale of The Building Company

September 2024

RMB advises Pepkor on sale of The Building Company

RMB served as sole financial adviser to Pepkor on the sale of its subsidiary, The Building Company (“TBCo”) to funds managed / advised by Capitalworks Private Equity (“Capitalworks”), in a transaction valued at c.R1.2bn.

TBCo is one of the leading building materials businesses in South Africa, serving the construction industry through both wholesale and retail channels and with specialised building materials. The completion of the transaction has enabled Pepkor to streamline its portfolio of businesses and to refine its focus on its strategically core businesses in the discount and value retail as well as fintech segments.

Pepkor previously attempted to sell TBCo to Cashbuild in 2020, but the transaction was prohibited by the Competition Commission. 

“The building materials sector has been under significant macro-economic pressure, and this has made operating conditions challenging in the last few years. Despite these headwinds, TBCo has navigated these challenges well, which enabled RMB to run a discrete, and ultimately successful, sell-side process to achieve Pepkor’s objectives. The team at RMB drew on the firm’s market leadership and significant experience in sell-side processes, as well as our extensive client network to achieve this strategically important outcome for Pepkor.” says Krishna Nagar, Head of Corporate Finance at RMB.

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