A consortium led by equity fund group Ethos Private Equity has bought industrial services group Waco International for an undisclosed sum, the companies said this week.

The parties believed that the transaction would improve the group’s black economic-empowerment credentials, introduce a robust capital structure, along with strong stakeholders, and ensure a refreshed commitment to the business by key management, said Waco Group CEO Stephen Goodburn in a statement.

Kagiso Strategic Investments would retain their 25% shareholding in Waco Africa.

The consortium members included Waco management, RMB Ventures, and Standard Bank.

Goodburn commented that, through its private equity partners, Waco’s balance sheet has been positioned to enable funding for key targeted acquisitions.

Ethos Private Equity partner Stuart Mackenzie added that the consortium was looking forward to growing the business to an even more substantial industrial services group through the partnership.

Waco was an attractive long-term investment owing to its favourable market position and strong cash generation ability, noted RMB Ventures senior transactor Nick Hudson.

Standard Bank head of leverage finance, corporate and investment banking Brian Marshall concluded: “Standard Bank continues to partner and support the Waco team in the next phase of their journey and we are excited to see the introduction of Ethos and RMB Ventures to the group.”