Catalyst gets Completion Authority approval to acquire stake in Orbit Chemicals

Private equity firm Catalyst has received regulatory approval to acquire a stake in Orbit Chemical Industries.

The competition authority approved Catalyst’s plans to invest the manufacturing firm but did not disclose how much they would be putting in the company.

The private equity firm however usually invests between $5 million (Sh506 million) and $20 million (Sh2 billion) in its acquisitions.

Catalyst has been increasingly investing business in the manufacturing sector, as it eyes lucrative returns. The firm has also invested in Tanzania’s Chemi & Cotex Industries and tea processing plant Chai Bora as well as Ethiopia’s mineral water bottling company Yes Brands.

Catalyst Chief Executive Paul Kavuma said the PE fund has been focusing on dynamic companies, entrepreneurs and management teams with growth potential, injecting capital to finance expansion.

“Catalyst’s investment will further strengthen Orbit’s product development and innovation capabilities to enhance service and product offerings to its key customers across the region so as to address growing local demand for increasingly tailored and inspirational goods at affordable prices,” Mr Kavuma said.

Orbit, which has been in operation since 1973, manufactures and supplies pharmaceutical, food and industrial chemicals. The firm also produces soaps, detergents, bleaches, creams and lotions, as well as commercial cleaning.

Orbit plans to grow its footprint in the fast moving consumer goods market, with the investment from Catalyst expected to accelerate its expansion.

“With their strong local presence, international networks and intimate knowledge of the region, we are able to leverage the relationship to accelerate our growth plans, particularly in entering new markets in which Catalyst has a depth of experience as active investors across the region,” Orbit Chemical Industries Chief Executive Officer Sachen Chandaria said of the investment.

Catalyst usually invests in companies for a maximum period of six years before exiting.