Ethos Private Equity has confirmed the intention to partially exit its stake in Waco, a South African industrial services company, through a listing on the Johannesburg Stock Exchange (JSE) later this year.

The Ethos-led private equity consortium, which included RMB Ventures, Standard Bank and Kagiso Strategic Investments and management, acquired Waco in 2012 from CCMP (formerly JP Morgan Partners) and the Asia-based Unitas Capital.

Stuart MacKenzie, CEO of Ethos, said: “Four years ago, Ethos and RMB Ventures committed to partner Stephen and his team in a growth strategy for Waco, underpinned by a robust balance sheet and supportive shareholders.”

“Waco’s executive team have done a remarkable job in setting the Group up for sustained growth. Waco has proven itself to be a differentiated industrial services business with exciting growth prospects and an exceptional management team. The time is right for it to benefit from public market ownership and access to capital,” he added.

The Ethos-led consortium was also involved in the buyout of Waco International in 2000, which was sold to the CCMP consortium five years later.

Waco, which was delisted from the JSE, is a diversified equipment hire and industrial services business operating in South Africa, sub-Saharan Africa, Australia, New Zealand), the UK and Chile.

The Group has core product offerings in forming, shoring and scaffolding, which includes suspended platforms and services such as insulation, cladding, painting, asbestos abatement and blasting, as well as relocatable modular buildings, portable sanitation and integrated hygiene services.

The Group’s business operates through a network of more than 100 branches from which it services over 14,000 customers.

Customers include a significant number of “blue chip” multinational and national companies and government agencies across a variety of industries, such as industrial maintenance, infrastructure, mining and resources, oil and gas, power generation, construction and engineering, education, healthcare and events.

Subject to market conditions and the requisite approvals by the JSE, Waco will be listed in the General Industrials – Diversified Industrials sector.

A pre-listing statement including full details of the offer is to be published in due course.

The listing will be open to eligible investors only.

RMB, Morgan Stanley and Standard Bank have been appointed as joint advisors and book runners to the potential listing.

Stephen Goodburn, CEO of Waco, said: “We are progressing our plans to list on the JSE. Waco is a unique, high-growth business focused on equipment hire and industrial services and the listing will enable us to access capital markets to fund future expansion both within the business and through bolt on or other future acquisitions.”