Nedbank Capital and Medu Capital conclude a management buy-out of SARCO

Based in Gauteng, SARCO is Africa’s only producer of steel rolls and sleeves to major steel producing companies world-wide. The company has the benefit of in depth knowledge of the local market and enjoys a relatively lower cost production. SARCO has established itself as a reliable quality supplier to first-tier steel global producers.

Dave Stadler, Head of Nedbank Capital Private Equity says, “We are proud to be invested in SARCO, a company with a 60 year history. It has the ability to compete in specialised areas in the international market, using its know-how, skills and experience. This positions SARCO amongst the leading roll producers to the steel industry world-wide.”

Nhlanganiso Mkwanazi, Director of Medu Capital, says that the acquisition of a stake in SARCO fits with Medu Capital’s strategy of investing in businesses that are leaders in their respective fields. “SARCO’s established brand, reputation as a producer of quality products, customer focus and service delivery has given the company a competitive edge and enabled it to maintain an established, well settled customer base both locally and internationally.” he adds.

Wessel Koekemoer, MD of SARCO says, “As a result of the buy-out, the business is focused and well positioned to take advantage of its competitive cost production to expand its global market share. In addition, with our extensive order book and elevated BEE credentials, we believe the company is well placed to weather the economic slowdown”.

SARCO has identified new products and regions into which it can promote and sell steel rolls and these potential growth opportunities provide positive future prospects.

Nedbank Capital Private Equity and Medu Capital will work with management to achieve this enhanced growth.

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Nedbank Capital and Medu Capital conclude a management buy-out of SARCO

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