25 Nov Moloto’s control acquisition positions Big Boy Plastics for the Big League
25 November 2017
Moloto’s control acquisition positions Big Boy Plastics for the Big League
Launched in the first quarter of 2017, 100% Black woman-owned Moloto Capital Investments (Moloto) has concluded its first transaction, acquiring a 51% stake in Big Boy Plastics (BBP), an emerging family-owned plastics converter based in Industria, Johannesburg. BBP boasts a suite of modern machines allowing it to produce a range of quality plastic products for a diverse customer base using injection moulding, blow moulding and extrusion techniques. Production line outputs include retail and industrial furniture, storage devices (including crates and agricultural bins) and engineering components.
Moloto pursues an active investor strategy. It acquires majority stakes in businesses at a fair price often in partnership with existing shareholders and adds value by: focusing strategic direction; optimising the financial structure; and leveraging its Black ownership credentials to, amongst other benefits, access new markets and further strengthen relationships with key customers. According to Founder and CEO, Merafe Moloto, the BBP transaction is an affirmation of the company’s approach. “We seek opportunities to acquire stakes in companies with whom we are philosophically aligned, where there is a defensible competitive advantage and where differentiation will support significant market share growth. We bring a new set of skills to the BBP environment which has the potential to appreciably improve the growth trajectory by expanding and optimising the value chain.”
BBP Founder and Director, Kevin Freese, is confident that the synergies with Moloto will prove their worth. “We spent time getting to know each other before signing the deal. It is still early days but Moloto has already unlocked value for BBP in a number of areas and opened a number of important doors which will expand our client base considerably.”
Co-Founder and CIO, Navaid Burney, reiterates Moloto’s hands-on investment approach. “BBP has massive potential. It’s a well-managed company built on entrepreneurship which is ready to enter into a major growth phase. Our inputs include the injection of appropriately-structured capital and investing in technological innovation. The desired output is higher turnover, enhanced efficiencies and improved profitability.”
Moloto’s business philosophy seeks to achieve dual ambitions. On a micro level, it commits to grow high-potential companies into market leading enterprises for the benefit of all stakeholders. On a macro level, the desired outcome is transformative empowerment, underpinned by investments that result in capacity expansion, job creation, local supplier empowerment and import substitution.
The Moloto management team has indicated that the BBP transaction is the first of many to come. “We have backing from a world class financial investor, Barak Holdings, and expect to execute on at least three more deals in the next few months. Several deals in manufacturing, agro-processing and corporate & industrial services are at various stages from due diligences to closing negotiations. We look forward to sharing more exciting news on our journey in due course,” concludes Merafe Moloto.