Real Water (TGMD Trade Works PLC)
Date Acquired: July 2008
Type of Deal: Leveraged Buyout
The Real Water plant (TGMD Water Works PLC) is a leading water bottling plant, which was acquired in July 2008 in a Birr 21 million transaction, including bank financing. Access Capital retains 90% ownership. The plant is located in Burayu town, some 20km from the capital Addis Ababa and is currently manufacturing bottled water under the trade name "Real Springs". The factory is bottling 0.6 liter, 1 liter, 1.5 liter and 2 liter bottles of spring water. The line capacity is 5,000liters /hour.
Expansion
5 liter Water Project
After researching national and international consumption trends, Access Capital noted the growth potential for the larger bottle in the Ethiopian market and in neighbouring countries such as Djibouti, Somalia and Southern Sudan.
The five litre bottling project will produce 3,000 bottles per hour. The new line will be installed adjacent to the existing Real Water bottling line, using the same spring, which is renowned for its clarity and pure taste.
Flavoured Water Project
Currently, flavoured water is being imported from different countries. Access Capital is planning an expansion project to bottle flavoured water on the premises of the Real Water bottling plant. This new flavoured line will have a capacity of bottling 5,000 bottles per hour (using 0.5 litter PET bottles).
Polytech PP Woven Bags Factory
Date Acquired: July 2008
Type of Deal: Leveraged Buyout
Access Capital acquired 90% of the Polytech PP Bag Factory in July 2008. It is located in Burayu, about 20 kilometres from Addis Ababa, and shares the same compound as Real Water. The transaction value was Birr 25.2 million, including bank financing.
Due to the strong demand for large, heavy duty packaging for industrial and commercial applications, the company has the potential to lead the domestic market. The company has the capacity for producing 20 million pieces of polypropylene bags and cloths per year. Until the acquisition by Access Capital, production had ceased for nearly two years, largely due to capital constraints.
The factory started operating again in November 2008 after being closed for over two years; the factory's capacity was increased from 50% in November - December to 80% from January onwards.
Piko Juice Factory PLC
Date of Inception: Sales started February 2009
Type of Deal: Greenfield
Piko Juice is a newly established private limited company, jointly owned by Access Capital SC (75%) and Prisma Investment PLC (25%). The transaction is valued at Birr 15.2 million, including bank financing. The main goals are to produce quality juice concentrate under a newly established brand name, SNAP, and to create a distribution channel with respectable sales growth.
The Piko Juice factory was commissioned in January 2009. The factory employs the latest technology in the form of machinery from Tetra Pak of Sweden to pack juice concentrates into aseptic Tetra Pak Packaging. The plant's technology is designed to deliver superior production while assuring juice quality.
Piko started production of 150 ml. pyramid shaped packs in January 2009 and is currently selling three flavours: tropical mix (punch flavour), pineapple and mango. In the near future new flavours such as orange, grape, and apple will be introduced, depending on consumer taste and market demand.
Expansion
Tetra Pak UHT Milk/Juice Project (1 liter pack)
Piko Juice Factory has recently commissioned a new state - of - the art juice factory using packing machines and material from Sweden's Tetra Pak®. The current products are juice flavour products (mixed, pineapple, and mango) packaged in 150ml pyramid packs.
The market has responded well to the promotional sales. Previous studies made by Access Capital indicated that there is a good market for 1 litre volume packs. The market for 1 litre packs is currently dominated by imports from nearby Gulf State countries and South Africa. There is also the added opportunity to implement the new 1 litre packaging line to use for pasteurized milk in addition to juice. There are very few milk pasteurization plants in the country.
In view of this, Access Capital is planning the 1 litre expansion project at the Piko Juice Factory.
MA Thermoplastic Industries PLC
Date Acquired: January 2008
Type of Deal: Leveraged Buyout
Thermoplastic production uses a wide range of processing technologies, such as film-blowing, extrusion and injection, and blow and compression moulding. The factory can produce up to 200 different products, depending on market demand.
Flour Mill:
A medium-sized flour mill is being prepared for operations. The plant is installed in the premises of TGMD, Burayu Town.
Pipeline Projects
Access Capital Automotive Engineering
Access Capital Automotive Engineering is a private limited company owned by Access Capital Services, that will engage in the assembly of different sized automobiles. The Company will be located in the Thermoplastic compound, Kaliti.
In its first year of operation the company plans to assemble 600 automobiles. All vehicle parts will be imported from FAW- Toyota Motors Corporation, which is a joint venture operation between Toyota motors (50%) and FAW Group Corporation (50%).
According to the implementation plan, the project will be operational within the next 5 months with a capital of Birr 20 million.
Access Entertainment SC
Access Entertainment (AE) is a share company under formation. Currently, it is in the process of analyzing the market potential and trends in motion picture production, exhibition and distribution to validate the basis for the establishment of Access Entertainment SC.
AE is planning to become the nation's premiere centre for entertainment in Ethiopia by developing various entertainment businesses, including, but not limited to, music and film. This is expected to both stimulate and satisfy the society's growing and diverse entertainment needs.
Upon its creation, Access Entertainment will be engaged in major aspects of the motion picture industry, such as distribution theatres, exhibiting motion pictures, providing post production services to other motion picture industry companies and the production of films for specialized audiences.
Pioneer Agro Industry
Pioneer Agro-Industry is a private limited company established with a startup capital of Birr 3.5 million. It is jointly owned by Access Capital Services (80%) and Green World Agro Industry PLC (20%).
Currently, the company is engaged in the following agricultural and agro processing activities;
- Large scale commercial cotton farming in South Omo
- Cattle fattening and live animal export to middle East
- Meat exports to middle East
- Pulse export, etc.
Addis Marble Processing
Addis Marble processing is a private limited company primarily owned by Access Capital Services. The company is planning to start a marble processing plant near Addis Ababa.
Once operational, the plant will produce 50,000 square metres of various sized marble slabs. The first phase of this project will start by buying the raw marble blocks from various local suppliers so as to produce diversified quality slabs.
Related companies
Michot Real Estate
Michot Real Estate is a private limited company primarily owned by Access Capital Services. Currently, working together on its first project, Access Capital and Meri Real estate are developing 8,300 square metre lot in front of CMC apartments on Ayat Road. The project will feature four buildings, each consisting of five stories.
The construction will be carried out using a revolutionary new construction method of light steel structure construction, in collaboration with Leaving Steel Construction Company.
Debrezeit Fun City
Debreziet Fun City will be a recreational centre primarily promoted by Access Capital services. The project is to be located around Debreziet lakes, incorporating and utilising the various recreational facilities in the area. As part of the plan, the project will also integrate time-share luxury apartments.
Access Resorts Hotel
ARH is a private limited company primarily owned by Access Capital Services and its affiliates. The company on commencement of operation will sell fractional (time-share) ownership of vacation apartments in popular locations within central Addis Ababa. The first of these vacation homes are expected to be sold for USD 3000 per week of ownership.
Currently, the company is in the process of evaluating and negotiating the acquisition of land in various convenient locations in Addis Ababa.
Access Real Estate S.C
Access Real Estate S.C is a real estate development and investment company aiming to take advantage of carefully selected real estate opportunities in Ethiopia. The company is mainly promoted by Access Capital Services S.C. with an authorized share capital of Birr 100.05 million.
Access Real Estate is involved in a joint venture project with Miraf Real Estate to develop 6,000 square metres of land near Megenagna. The project will include a seven storey, 154 three-bedroom apartment complexes, complete with parking, laundry, recreational and other facilities and priced at a competitive price of Birr 795,000, including VAT. Construction at this site began in September 2009 and is progressing on schedule for completion within 18 months.
In December 2009, Access Real Estate entered a second joint venture agreement with Laura Trade and Industry, which owns 2,900 square metres of land adjacent to the Miraf property.
The company is now constructing a single tower of seven stories, 96 3-bedroom apartments, each with 2 baths, spacious living areas and kitchens as well as storage space and balconies. Both apartment types are approximately 125 square metres in size (up to 135 square meters including the balconies)
Marfel Aluminum
Access Real Estate has recently acquired MARFEL PLC, an aluminium profile company, to be able to supply aluminium profiles for doors, windows and related aluminium products for the condominiums that it is constructing in Addis Ababa.
The current construction boom in the country is indicative of a great potential for this company. Furthermore, the company will be in a position to supply Access Real Estate, as well as other construction companies and individual homebuilders with quality aluminium profile doors, windows, wall panelling and handrails.
Professionals with proven experience in the aluminium profile industry and competent in managing the company's operations, will be hired to manage and run the aluminium profile company.
