Workers at the Orbit Chemical Industries in Nairobi pack detergents. PHOTO | FILE
By CHARLES MWANIKI, cmwaniki@ke.nationmedia.com
In Summary
- Nairobi-based private equity firm Catalyst Principal Partners has received the go-ahead to complete its investment in manufacturing firm Orbit Chemical Industries Ltd.
- Although both parties have not disclosed the size of the deal, Catalyst’s typical investment ranges between $5 million (Sh500 million) and $20 million (Sh2 billion), either through equity, debt or a mixture of both.
- Orbit is a 43-year-old company that primarily supplies industrial chemicals to industrial, pharmaceutical, food and domestic products manufacturers.
Nairobi-based private equity firm Catalyst Principal
Partners has received the go-ahead to complete its investment in
manufacturing firm Orbit Chemical Industries Ltd.
Catalyst Monday announced the Competition Authority of Kenya
had approved the investment — whose amount it did not disclose — which
will be used by Orbit to increase manufacturing capacity, regional
operations and product range.
The 500-employee firm operates from its Mlolongo factory in Athi River.
Besides own products, the firm is a well-known
large-scale contract manufacturer. It counts among its customers firms
like Unilever Kenya, Bidco Oil Industries, Kapa Oil Industries Ltd,
Reckitt Benkiser, Farmer’s Choice, Kenya Airways, Coca Cola, New KCC and
Delmonte.
Although both parties have not disclosed the size
of the deal, Catalyst’s typical investment ranges between $5 million
(Sh500 million) and $20 million (Sh2 billion), either through equity,
debt or a mixture of both.
“We will be able to leverage the relationship (with
Catalyst) to accelerate our growth plans, particularly in entering new
markets in which Catalyst has a depth of experience as active investors
across the region,” said Orbit chief executive officer Sachen Chandaria.
Orbit is a 43-year-old company that primarily
supplies industrial chemicals to industrial, pharmaceutical, food and
domestic products manufacturers. It makes soaps, petroleum jelly, hand
gels, detergents, fertilisers, liquid detergent, washing powders and
fertiliser, pesticides and herbicides.
In April last year, NSE-listed Eveready East Africa
announced that it would form a joint venture company of equal stakes
with Orbit Chemicals with the aim of producing common goods, mainly in
the personal care range.
The joint venture is aimed at leveraging on Eveready’s distribution network and Orbit’s manufacturing expertise.
The investment in Orbit is the third for Catalyst
in Kenya having invested in the pharmacy retail chain Goodlife —
formerly known as Mimosa Pharmacy — and in SME lender Jamii Bora Bank.
Catalyst invests in companies for between four and six years before exiting.
Across the region, the PE firm has made investments
in Tanzania in personal healthcare manufacturer ChemiCotex Industries,
logistics and heavy equipment renting company EFFCO and Chai Bora, a tea
packer which also has operations in Kenya.
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