Capital Group Private Markets, an emerging markets private equity group and part of the Capital Group Companies, has joined Wendel as significant minority shareholder in Tsebo, a Pan-African facilities services company.

Capital Group Private Markets was invited to invest as a valued partner alongside Wendel in the acquisition of Tsebo. 

Upon completion, Capital Group Private Markets will hold a significant minority stake of 35% in Tsebo. 

Provided the transaction is closed, Wendel will subsequently remain Tsebo's controlling shareholder, with 65% of its shares for a total equity investment of ca. €150m.

Wendel and Capital Group Private Markets will continue to support Tsebo's acquisition strategy through additional investments, if necessary.

Guilherme Lins, Managing Partner at Capital Group Private Markets, said: "We are excited to partner with Wendel, a company that has demonstrated its ability to identify and develop high-quality investments, such as Tsebo."

"We believe Tsebo is uniquely positioned to continue its strong growth across Africa and we look forward to working with Wendel to contribute to their long-term commitment to creating value at Tsebo,” he said.

Capital Group Private Markets will make its investment through CIPEF VI, a $3bn fund focused on building a diversified global emerging markets private equity portfolio. 

As a significant minority shareholder, Capital Group Private Market's representation in Tsebo's governing bodies will be commensurate with its stake in the company.

Founded in 1992, Capital Group Private Markets has invested over $5bn in more than 80 companies across emerging markets, on behalf of leading, global institutional investors in six private equity funds. 

As an active investor in Sub-Saharan Africa, Capital Group Private Markets first invested in South Africa in 1999.

Founded in Johannesburg in 1971, Tsebo is a pan-African service provider to organizations and African and international companies operating in a diverse range of sectors. 

Tsebo offers a broad array of services to its customers including facilities management, remote camp management, catering, cleaning, hygiene, protection, energy and procurement.

Employing approximately 34,000 people across 23 countries, Tsebo provides solutions such as maintenance, catering, cleaning and security services, as well as remote camp services to clients across Africa.

Frédéric Lemoine, Chairman of Wendel’s Executive Board, said: "I am delighted to see Wendel and Capital Group, two long-term investors, join forces at the helm of the same pan- African company, Tsebo. I am pleased to team up with partners who share our values and our vision of the African continent. With Capital Group, we will actively develop Tsebo in all their services lines and across most African countries.”