Namibian private equity fund manager Eos Capital has acquired a majority stake in Elso Holdings, one of the oldest, environmentally conscious cleaning product manufacturers in Namibia.

The acquisition, pending Competition Commission approval, is the first such investment on behalf of the firm’s N$450m Allegrow Fund.

Ekkehard Friedrich, CIO of Eos Capital, said: “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. For these reasons Elso is the ideal candidate for our Allegrow Fund.”

Elso is a substantial local Namibian manufacturer that prides itself in the environmentally-friendly manufacturing of biodegradable, toxic-free cleaning liquids and powders, tissue paper products and cleaning equipment.

With seven branches across the country and around 120 employees, the company is also in an ideal position to increase their supply to wholesalers, retailers, guesthouses, hotels, businesses and Government Ministries across the country.

According to Friedrich, CIO of Eos Capital, after acquiring a majority stake of Elso, Eos will ensure overall productivity is continued with the retention of all employees and management, while a new Chief Operating Officer (COO) will help alleviate some of the workload expected from the growth.

This in turn will allow incumbent CEO and entrepreneur René Rusch, who has substantially built the company since 1998, to focus on more strategic issues.

Eos Capital aims to expand Elso Holdings Namibia and place the existing enterprise’s environmentally friendly, bio-degradable products within reach of more Namibians and those within the SADC region.

The firm sees the acquisition and future plans for Elso as a positive response to Government’s industrialisation policy and the drive towards import substitution and local value-addition. 

While the venture affords Eos an opportunity to expand this well-known and established enterprise over the next few years, Elso can now reach its full potential with an injection of capital and business acumen in the form of new operating models, governance, strategy and management support.

Johannes !Gawaxab, Executive Chairman of Eos Capital, said that partnerships, like that with Elso, can help Namibian businesses operate at much higher levels than previously thought possible: "This investment will strengthen the company, making it possible to expand and contribute towards job creation and economic development."