Adenia acquires distributor of electrical and solar equipment in South Africa
Adenia Partners, a private equity firm investing in Africa, has acquired a majority stake in Herholdt’s, a leading distributor of low-voltage electrical products and solar products in South Africa. Financial terms of the transaction have not been disclosed.
Established in 1964, Herholdt’s operates in Bloemfontein, Kimberley and George, and has recently opened branches in Johannesburg and Cape Town.
Herholdt’s supplies a broad product portfolio of 10,000-plus items to professionals – such as installers, contractors and resellers – as well as end-users. Herholdt’s originally focused on the sale of electrical equipment such as cabling, switches and sockets, as well as lighting. In 2018, Herholdt’s successfully diversified into the distribution of solar systems, a market experiencing rapid growth on the back of increasing product affordability and difficulties faced by the national power grid system.
Adenia will work together with Herholdt’s to strengthen its leadership position in the solar market through new store openings, partnerships with key promoters, digitalisation, as well as potential acquisitions. The investment is Adenia’s first in South Africa.
“We are delighted to begin our South African journey by investing in Herholdt’s, a fast-growing business with an impressive corporate culture. As a responsible investor, we were particularly attracted by the potential for high contribution to the SDGs, and specifically to improve access to reliable and affordable energy,” says Florent de Boissieu, Partner at Adenia. “We are pleased to continue our pan-African expansion with our newest office in Johannesburg, as we believe the on-the-ground presence of our team is instrumental in actively supporting our investees.”
“We are thrilled to welcome Adenia as an investor and look forward to continue our growth with their strategic guidance and steadfast approach to improving governance. The partnership is in perfect alignment with Herholdt’s ambitions to become a national market leader, while meeting the highest industry and environmental standards,” said Heine Herholdt, CEO of the company.
The main advisors on the deal were Andrew Bahlmann and Nicolas Souvaris, from Deal Leaders International.
“The chemistry and synergy between the Adenia and Herholdt’s teams was there from day one and I have no doubt that their combined efforts will be formidable. It is exciting for us to see another great South African company attract an international partner for its next phase,” says Bahlmann, Chief Executive of Deal Leaders International.