Deal Summary
Solevo MEA B.V. ("Solevo"), a leading pan-African specialty chemicals distributor, backed by its controlling partner, Development Partners International (DPI), acquired a 100% equity stake in Rolfes Group (“Rolfes”), a South African food ingredients and diversified chemicals distributor. As part of this transaction, Solevo has agreed to sell a 12.5% stake in Rolfes to Afropulse Group, a permanent capital investment company wholly owned by black women, who will be Selovo’s partner in South Africa. This acquisition marks an exit for Rolfes’ former owners—Masimong, Sabvest, and Phatisa. Previously listed on the Johannesburg Stock Exchange, Rolfes was taken private in 2020 after Phatisa acquired a 40% stake, with Masimong and Sabvest retaining their shares as shareholders. Solevo’s acquisition of Rolfes is a key step in its long-term acquisitive growth strategy following its 2023 acquisition by DPI alongside minority co-investors South Suez and the German development finance institution, DEG.
Terms
- Acquiring Companies: Solevo MEA B.V. (87.5%), Afropulse Group (12.5%)
- Previous Owners: Phatisa (Phatisa Food Fund 2), Masimong (Masimong Chemicals (Pty) Ltd), and Sabvest (Sabvest Finance and Guarantee Corporation (Pty) Ltd)
- Deal Type: 100% Equity Buyout (Corporate Acquisition)
- Target Company: Rolfes Group
- Investment Amount: Undisclosed
Deal Rationale
This acquisition aligns with Solevo’s strategy to leverage partnerships and pursue inorganic growth to expand both its sectoral and geographic footprint to become Africa's leading specialty chemicals distributor. Originally named “Fertilizer and Input Holding BV,” Solevo was acquired by Louis Dreyfus Company (LDC) in 2011. In 2017, Helios Investment Partners (“Helios”) and Temasek Holdings Ltd purchased a 65% and 35% stake in the company, respectively, rebranding it as “Solevo MEA B.V.” as part of a corporate carveout of LDC’s Africa input business. Helios then guided Solevo’s expansion into Ghana in 2022—its eighth African market—before selling the company to DPI in a $250 million deal in 2023. DPI subsequently announced its intent to accelerate Solevo’s expansion into new regions, aiming to diversify its specialty chemicals portfolio across key sectors. Following the DPI acquisition, Solevo has forged or expanded strategic partnerships with major specialty chemicals companies, including Bayer and Ashland, solidifying its presence in existing markets. Additionally, an April 2024 partnership with Phosphea, a global animal feed solutions company, expanded Solevo’s distribution network to Togo and Nigeria for the first time.
The acquisition of Rolfes allows Solevo to enter South Africa’s growing market, complementing its established presence in West and Central Africa. Rolfes’ recent transformation further aligns it with Solevo’s growth strategy. The Phatisa-led management buyout that took Rolfes private in 2020 was designed to allow the company’s leadership to focus on private equity-aligned growth objectives, positioning Rolfes for a smooth integration into the DPI-controlled Solevo Group.
About the Fund Manager
Established in 2007, Development Partners International LLC is a London-based private equity firm specialising in growth capital and buyout investments with a capital base of $1.1 billion. DPI targets profitable or cash-flow-positive companies that are growing organically or through acquisitions. The firm manages six funds, including the African Development Partners III, with a commitment of $900 million. DPI has made investments in over 33 companies with eight exits. DPI emphasises strong partnerships with portfolio companies, working closely with management teams to create value and identify exit opportunities. DPI typically invests between $10 million and $120 million per investment.
