Jacobs/Vulindlela get Summit stake

SUMMIT Crane Hire sold a majority stake in the firm to private equity investors Jacobs Capital and Vulindlela Holdings for an undisclosed amount.

Wessel Jacobs, the chief executive of Jacobs Capital, said the inclusion of new private equity partners would enable Summit to realise a number of major growth opportunities in key areas.

Mike Grant, the chief executive of Summit Crane Hire, launched the company in 2010 to provide a one-stop lifting and moving solution.

But Grant said he realised earlier this year there was a need to take on private equity partners to maintain the company’s steep growth curve and to involve partners with the right black economic empowerment (BEE) credentials.

BEE scorecard

Grant said Jacobs Capital and Vulindlela would add value to the existing team at Summit and with an improved BEE scorecard and financial backing, the firm was well positioned to work on large infrastructure projects in the public and private sectors.

In terms of the transaction, the Vulindlela/Jacobs Capital consortium have acquired a majority stake in the business with founder Grant, chief financial officer Clint Correia and chief operations officer Leonard Opensaw each owning a stake.

Tyrone Bricknell, the investment manager at Jacobs Capital, said the investment in Summit Crane Hire was exciting because they would like to use their investment in the company as the foundation for further growth in this sector. Jacobs said the Summit investment was a valuable addition to the Jacobs Capital portfolio, whose investments were set to reach R2billion soon following an aggressive acquisition drive over the past year.