South African private equity firm Metier has partially exited its investment in plastic products manufacturer Astrapak and has agreed to exit Inhep Electronics Holdings (Inhep).

Metier originally invested in Inhep and Astrapak via its Lereko Metier Capital Growth Fund (LMCGF) in 2007 and 2008, accordingly.

J-P Fourie, Head of Investor Relations at Metier, said that Elementum, investment made in 2007, has signed agreements and awaits Competition Commission approval for Stockholm listed, Assa Abloy Ltd to acquire Inhep.

Assa Abloy is an international group with 47 000 employees and market cap of R300bn. 

In South Africa, Assa Abloy is best known for the Yale and Union brands and has its head office and main manufacturing centre in Roodepoort, Johannesburg. 

“Metier’s key investment value add was to drive Inhep’s expansion into Sub-Saharan Africa, showing sustained compound annual growth of 20% a year over the last seven years, with East and West Africa showing growth rates of closer to 40%. This feature proved to be one of the main attractions to Assa Abloy,” Fourie told Africa Global Funds.

Metier's principals led and advised Astrapak prior to its 1997 IPO on the JSE, and continue to be represented on the board. 

In 2008 LMCGF built up a sizeable minority position in the company in support of the new executive management team and restructured board. 

Driving a renewed change programme focusing on higher margin specialist areas, Metier has helped improve working capital and treasury disciplines and re-energised the team.

Fourie said that the shareholders of Astrapak have approved the R1.37bn offer from London Stock Exchange listed plastic products design and engineering company, RPC Group and the unbundling and listing on AltX of Master Plastics. 

RPC Group employs over 21 900 people, operates in 33 countries with 188 operating sites. 

“Astrapak offers RPC Group entry into the Southern African Market,” he said.