Investec Principal Investments and partners realise successful exit from Sunpac
Our role
Investec Principal Investments, together with fellow shareholders, Morris Orlin Outfitters Proprietary Limited ("Morris Orlin") and members of company management, have completed the disposal of a combined majority stake in Sunpac Proprietary Limited ("Sunpac") to JSE-listed CA Sales Holdings Limited ("CA&S").
Sunpac is a leading South African distributor and turnkey route-to-market partner to a portfolio of prominent international beauty, cosmetic, personal care and baby care brands. The company provides end-to-end category management services to major national retailers, including regulatory compliance, warehousing and logistics, sales, marketing and in-store execution in the personal care category.
“The company and its founder are long-standing clients – for over a decade Investec has delivered an array of services to Sunpac in support of its operations, including debt funding, supply chain and trade finance, hedging, and forex services," explains Nicholas Stretch from Investec Principal Investments.
When Sunpac's former controlling shareholder sought to sell its stake in 2021, family office Morris Orlin approached Investec with the opportunity to invest in this rapidly growing business; together they bought a minority interest and subsequently increased their shareholding over a two-year period.
"Sunpac brings a specialised sourcing and brand-management capability that complements the CA&S portfolio of businesses and strengthens our exposure to growing FMCG segments. With its strong management team, aligned co-shareholders and proven execution capability, we are confident Sunpac will help scale clients’ brands across borders while supporting our continued focus on disciplined, long-term value creation. We are also encouraged that Investec and Adam Orlin share our confidence in CA&S as the right shareholder to take the business forward.” Duncan Lewis - CA&S Group CEO.
Transaction overview
“Introducing Investec as a shareholder was a great endorsement that what we were building had both potential and credibility,” notes Sunpac founder and executive chairperson, Shaun Laffer. “Investec and Morris Orlin gave management the confidence and support needed to accelerate our growth potential.”
In order to facilitate Sunpac's expansion of its portfolio and the scaling of its business, Investec subsequently financed two strategic acquisitions by the company - Sela and Techniblock - thereby reinforcing the distributor's position in the local health and beauty sector.
“Investec was pivotal in introducing deal flow, helping find strategic brands to acquire, and deploying the capital to enable these strategic acquisitions," continues Shaun Laffer.
“Having access to the depth and breadth of skills at Investec, including funding and legal capabilities, made these acquisitions seamless. The team’s always-available and hands-on approach was the perfect cultural fit, and it was reassuring that we could tap into these resources. Investec backed us unconditionally and supported us in all our growth ambitions as a strategic partner.” - Shaun Laffer, Sunpac CEO.
The partnership embodies the Investec Principal Investments' strategy: investing alongside trusted partners to achieve strategic growth, operational enhancement and disciplined resource allocation. “We act as a selective, active minority partner, backing businesses we understand, led by highly-skilled management teams,” explains Nicholas Stretch.
“We invest with a long-term mindset, leveraging Investec's network, sector insights, and balance-sheet strength to unlock durable value, drive meaningful business evolution and deliver superior risk-adjusted returns. Investment partners include entrepreneurs, founder-led businesses, private equity funds, family offices, investment holding companies, and private companies," Stretch adds.
The sale of the combined 71.19% stake in Sunpac to a listed entity, in the form of CA&S, represents the closing out of another favourable private equity venture by Investec and Morris Orlin. For CA&S, the acquisition bolsters its strategic capability in the fast-growing private and confined label category.
“This deal is a culmination of persistence and hard work. When we set up our family office, this was the first asset I looked to invest in. We couldn't have asked for better partners than Investec, Shaun and the Sunpac team. CA&S have acquired a brilliant asset and a phenomenal team," comments Adam Orlin from Morris Orlin.
Sunpac will continue to operate as an autonomous business with management and leadership remaining in place to ensure operational continuity. The company will also remain an Investec client, with Investec Business and Commercial Banking serving as a funding partner following the sale to CA&S.
About Sunpac
Established in 1967, Sunpac has earned the trust of retailers through the consistent and professional implementation of its full category-management solution. The company’s ‘difference’ lies in the ability to blend a deep understanding of consumer trends – across the beauty, personal care and baby categories – with efficient importing, warehousing, sales, and marketing capabilities, sourcing quality international brands that satisfy local consumer demands.
A comprehensive national footprint services retailers across South Africa and neighbouring countries, deciphering consumer trends, managing supply chain logistics, and executing marketing strategies for sought-after local and global brands.
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