Clive Howell, Head: Private Equity, Nedbank CIB

A partnership spanning nine years between Nedbank Private Equity (NPE) and AARD Mining Equipment (Pty) Limited has achieved extraordinary returns for all stakeholders.

Clive Howell, Head: Private Equity, Nedbank Corporate and Investment Banking (Nedbank CIB), says NPE has disposed of its 48.9% shareholding in AARD in a transaction that can be regarded as a prime example of a successful leveraged management buy-out.

Established initially in 1983 as a division of the Boart Longyear group of companies, the business was subsequently sold to a consortium comprising NPE, Matasis Mining Equipment (a BBBEE group) and management in 2008 – renamed AARD Mining Equipment.

AARD produces, markets and distributes vehicle-mounted hydraulic rock drills, drilling rigs, load haul dump machines (LHDs) and utility vehicles for underground hard rock mines in sub-Saharan Africa.

Howell says the investment into AARD was a classic case in the private equity world of investing into a good company with great growth prospects, alongside a solid management team that is adequately incentivised.

“In exiting Nedbank CIB’s investment in AARD, the highly experienced team has enabled further improved participation for the remaining shareholders.”

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