Universal Industries

Universal Industries (Universal) comprises of synergistic businesses that are market leaders in distributing and manufacturing commercial food preparation, storage and display equipment to the food retail, restaurant and hospitality industries. “The group has a considerable African footprint with the bulk of its exports penetrating sub-Saharan Africa,” explained Mike Donaldson, CEO of RMB Corvest.

RMB Corvest has partnered RMB Ventures to secure considerable liquidity for expansion while the transaction further expanded the BEE status of Universal through the participation of the Mineworkers’ Investment Company (MIC).

“Universal offers a rare opportunity to invest a sizeable equity cheque into a large, stable group comprising of market-leading businesses serving attractive end markets,” said Nchaupe Khaole, Executive Director: MIC. “Each business within the group offers robust growth prospects, promising fine returns across the board.”

Founded in 2004 through a series of initial acquisitions, Universal has yielded continuous expansion across related sectors, meriting its listing on the JSE in 2007 before being acquired by Ethos. This deal saw the founders and management of the business together with their new partners to identify positive opportunities going forward – building up a portfolio of African investments that add strategic value to their markets.

“Within the group our businesses are at the forefront of their respective local sectors,” explained Darryl Paynter, CEO: Universal Industries. “Our companies are associated with high quality, reliability, comprehensive services and solutions for suppliers within each niche market.”

As such Universal offers significant market advantage to investors. “The group combines decisive benefits including scale, established distribution networks and diverse product ranges with a remarkable delivery track record, giving the complete portfolio a remarkable edge” said Muhammed Moosa of RMB Ventures.

Still beyond these attributes, the degree of customisation required, short lead times and cost of transporting equipment continue to provide competitive advantages over imported solutions. “The group offers local solutions to local problems thereby directly enhancing our economy and skills base,” noted Donaldson. RMB is still confident that niche manufacturing organisation like Universal can play a major role in driving the SA economy."

Holding strong market positions with a diversified portfolio across three divisions, Universal presents investors with the additional security of its blue chip, diversified customer base. “We enjoy strong relationships with key players, including all the major SA food retail and QSR brands,” said Paynter.

Exports total 25% of revenue across the group, while recent investments in Nigeria and in Kenya provide a platform for continued growth in West and East African markets.

“Universal achieved eight acquisitions in the last five years alone,” said Moosa. “Of these, the three largest acquisitions accounted for 33% of the total EBITDA for the group as recently as 2015, underscoring our confidence in the group’s projected trajectory. The size and stability of the group, coupled with the diversity of its core businesses significantly reduce downside risk. Our investment in Universal ensures the liquidity needed to guarantee additional African acquisitions – thereby unlocking still further growth across the continent.”