Phatisa has invested in Torre Equipment Africa (TEA), a pan-African equipment distributor with operations in Côte d’Ivoire, Ghana, Liberia, Sierra Leone, Cameroon and Botswana, among others.

According to the subscription agreement, African Agriculture Fund (AAF), a private equity fund managed by Phatisa, will subscribe for 40% of the ordinary shares in TEA. 

A management consortium will simultaneously subscribe for 5% of the shares in TEA.

The shareholding in TEA after the transaction will be 55% Torre, 40% AAF and 5% Manco.

The transaction will raise new capital of $15.7m for TEA.

Torre Equipment Africa, a subsidiary of JSE-listed Torre Industries, specialises in the supply of branded capital equipment, distribution of high-quality spare parts and the delivery of reliable repair and maintenance services.

The Phatisa deal team, led by Joseph Bergin, Senior Partner, was attracted to the opportunity of investing into TEA as the business has strong growth prospects and a highly capable and experienced management team.

Phatisa will be able to assist TEA in unlocking new opportunities and expanding sales within the agricultural sector, where we have deep knowledge and specialists in the palm oil, cocoa and sugar industries.

Valentine Chitalu, Phatisa’s Group Chairman, said this is the ninth African Agriculture Fund portfolio company, which represents a significant development for the Fund and Phatisa alike.

"We continue to execute against our investment strategy and demonstrate our commitment to making strategic investments to support the long term growth of Africa’s agriculture and food value chains," he said.

"This transaction enables the further expansion of our inputs platform and Torre’s reach, while leveraging well-established business in sub-Saharan Africa, regional leadership expertise and strong brand momentum in the region," he added.

Phatisa’s investment into TEA will help support the expansion plans across the Group and allow the company to deliver on their objectives in becoming the best supportive dealership on the continent.

Stephen Smithyman, CEO of Torre Equipment Africa, said: "TEA is about to commence on an exciting journey with Phatisa as the business continues to grow from strength-to-strength. Our accomplishments are a testament to our dedicated staff, loyal customers and supportive shareholders." 

This investment comes on the heels of the recent appointment of TEA as the official distributor of Case IH in Côte d’Ivoire, a global leader in agricultural equipment, and amid discussions to expand to Cameroon and other west African countries, thus increasing their agricultural footprint within the region. 

"Phatisa’s deep expertise in agriculture brings capital and ability to TEA and we are excited to work together in driving value creation through strategic ambition, expanding our product offering and ensuring we continue delivering customer service excellence," added Charles Pettit, CEO of Torre Industries.