Tiger Wheel & Tyre: Carlyle agrees to acquire stake

PRIVATE equity firm Carlyle Group had agreed to acquire a stake in South African tyre dealer Tiger Wheel & Tyre, said a person familiar with the matter, marking its first deal in Africa’s most developed economy. Until now, Carlyle has focused its nearly $700 million (R7.7 billion) Africa fund elsewhere on the continent. The investment would mark an endorsement of South Africa by foreign investors, even as it has been hampered by slowing growth and labour strife. Carlyle, with insurer Old Mutual, would acquire the stake from Ethos Private Equity, said the source, who declined to be identified because the information is not public. Carlyle declined to comment. No one was available for comment at Old Mutual or Ethos. It was not clear whether the deal had received approval from competition regulators. Tiger Wheel & Tyre sells and fits replacement tyres across South Africa and has a presence in Namibia, Botswana and Mozambique. The deal valued the company at about R1.75bn including debt, the source said. – Reuters