Ethos Private Equity is set to exit its investment, the Tiger Automotive Group (TiAuto), subject to the fulfillment of certain conditions, including competition approval.

Ethos confirmed that a private equity consortium comprising US-based Carlyle Group (via its $700m sub-Saharan fund) and SA-based Old Mutual Private Equity (OMPE Fund IV) will acquire TiAuto for an undisclosed sum.

On conclusion of the transaction, the acquiring consortium will hold 100% of TiAuto’s share capital.

TiAuto’s current senior management team will form part of this shareholding.

Shaun Zagnoev, Ethos partner, said: “For a number of years, Ethos has been receiving unsolicited offers for TiAuto. This is testament to the quality of the business, management team, and staff. We are proud of our partnership with management and have been fully supportive of the growth initiatives which have underpinned TiAuto’s impressive performance, most especially during some challenging market conditions.”

TiAuto holds a leading market position in the wheel and tyre retail and wholesale market in Southern Africa through four major divisions: Tiger Wheel & Tyre, Tyres & More, YSA and Treads Unlimited.

Ethos originally acquired TiAuto in 2008, delisting the business from the JSE in a transaction valued at approximately R1.0bn ($912m).

Over Ethos’ investment holding period, TiAuto has grown significantly.

As such, Tiger Wheel & Tyres retail stores have increased from 52 in 2008 to 86 currently; Tyres & More retail stores successfully launched in 2013 and now have 18 stores; a new battery line has been launched.

In addition, Hankook licence secured and successfully distributed through the wholesale division and GT Radial Licence secured for distribution through Wholesale division.

Alex Taplin, TiAuto CEO, said the private equity ownership has been a positive experience for TiAuto.

“We have enjoyed a constructive collaboration with Ethos, over which time we have worked together to strategically enhance our business and grow operationally. We are a better, more sustainable business today than we were six years ago and much of this value can be ascribed to the professional and supportive style that Ethos has demonstrated during their time with us.”

“This is why management has been so supportive of partnering with private equity shareholders again. Carlyle and OMPE represent a wealth of expertise which will dovetail perfectly with management's future vision and growth ambitions for the group,” he added.