African equity firm Jacana Partners Ltd. has invested in Process and Plant Sales Ghana Ltd., a top African supplier of industrial goods and services, via a partnership with accounting advisory firm Ernst & Young, company officials have announced.
Jacana will support PPS Ghana’s operational growth by increasing its stock and product range while financing the company expansions to other West African nations; Ghana is one of the most well-endowed mineral jurisdictions in sub-Saharan Africa.
PPS Ghana CEO Rudolph Matey said the move will allow his company to provide a greater variety of industrial products and services. “We are more determined than ever, to become a leader in the industrial distribution market in West Africa,” he said.
The deal marks the first Jacana partnership with E&Y Enterprise Growth Services, a non-profit program providing support to Small to Medium Enterprises (SMEs) in emerging markets, consulting teams at heavily subsidized rates. Jacana, noted company officials, has also been working with E&Y EGS to improve PPS’ working capital management.
Christian Opoku-Biney, a partner at Jacana, called it a win-win situation. “The market for industrial consumables is growing rapidly and PPS has an opportunity to expand throughout the region,” he said, while “we have the knowledge and international network to support growth.”
By reducing the company’s cash conversion cycle, meanwhile, E&Y will help PPS release millions in capital back into the business.
PPS Ghana Ltd., a leading supplier of industrial consumables and services to the mining, construction and processing industries in West Africa, was founded in 1998; it now markets more than 100 products from 16 of the world’s leading industrial brands, more than any other regional supplier.
Jacana Partners Ltd. is a pan-African private equity firm investing in entrepreneurs and SMEs. Jacana invests between $1 to $5 million across sectors in Ghana, Kenya, Liberia, Sierra Leone, Tanzania and Uganda; Jacana has committed $28 million to date in 23 portfolio companies, creating more than 1,300 jobs. Ernst & Young is a global leader in assurance, tax, transaction and advisory services.