Old Mutual/Carlye ZAR1.3 billion LBO of Tiger Automotive

Overview:

• Global investment, saving, insurance and banking group Old Mutual and private equity fund The Carlyle Group have acquired South African automotive retail company Tiger Automotive from Ethos Private Equity Fund.
• The acquisition took the form of an LBO, backed by a portion of debt and equity provided by the two acquirers. Tiger Automotive’s founders also provided an equity investment for the transaction. 
• Absa Bank acted as mandated lead arranger and lender, providing a senior term loan and working capital facility to the investment vehicle, known as Business Venture Investments No 1858, secured using a South African security SPV structure. 

John Crabb - Journalist