AECI Sells Much Asphalt to Old Mutual Private Equity and Sphere in a R1.1 Billion Transaction

Old Mutual Private Equity (OMPE) and black-owned investment firm Sphere Investments have acquired Much Asphalt, South Africa’s leading producer of asphalt and bitumen products, through a deal valued at R1.1 billion. This acquisition, which includes management participation, is funded via a mix of debt and equity financing.

Much Asphalt operates as the largest commercial supplier of asphalt, bituminous binders, and emulsions in South Africa, with a unique nationwide presence primarily serving the road surfacing market.

In a statement, AECI Group CEO Holger Riemensperger highlighted that OMPE and Sphere offer financial stability, market reach, and a sustainable future for Much Asphalt. He noted, “This sale represents an important milestone in AECI’s strategic path, marking a critical part of the company’s broader divestment strategy announced previously.”

AECI’s ongoing strategy focuses on doubling the profitability of its primary businesses—Mining and Chemicals—by 2026, with ambitions to become a top-three global player in Mining by 2030.

OMPE and Sphere emphasized that this acquisition aligns well with government priorities, as road infrastructure investment remains essential to driving economic growth and creating jobs in South Africa. “Together with Much Asphalt’s competitive market positioning, this partnership equips the company to play a significant role in South Africa’s road infrastructure projects in the coming years,” they commented.

This transaction serves as the inaugural and flagship investment of OMPE’s new OMPE Fund VI. OMPE and Sphere plan to collaborate closely with Much Asphalt’s management team, aiming for transformative business growth throughout the investment period.

OMPE co-head Jacci Myburgh expressed optimism regarding infrastructure repairs led by the current government, and affirmed OMPE’s commitment to investing in sectors they expect to return to stability over the medium to long term, following a volatile economic decade for South Africa. She stated, “A strong road network is crucial to South Africa’s promising rebuild, which should drive economic expansion and job creation.”

Burchert Johannes, investment principal at OMPE, praised Much Asphalt’s management for effectively steering the company through various industry challenges and expressed enthusiasm about partnering with Sphere to support the company’s growth goals.

Mohammed Sabi, a director at Sphere, stated that this acquisition builds on Sphere’s 21-year history of investing in high-quality businesses that provide essential products and services.

Bennie Greyling, Managing Director of Much Asphalt, added that the company is well-positioned to capitalize on the backlog in road infrastructure spending within the country.

Old Mutual Private Equity, part of Old Mutual Alternative Investments, stands as one of South Africa’s largest private equity firms, with a 24-year track record of substantial investments in private businesses across key sectors, including companies like Actom, Tourvest, Ti-Auto, Primedia, In2Food, and 10X Investments.

Sphere, founded in 2023, has a successful history of partnering with South African branches of major international corporations, including Babcock International Group, Honeywell International, and Pearson, and maintains a diversified asset portfolio across engineering, infrastructure, custom software, and industrial education sectors.