Ascent buys Limuru auto firm
Private Equity fund, Ascent Rift Valley Fund (ARVF) signed a deal to acquire Limuru based Auto Springs East Africa to angle for growing assembly market.
Auto springs, the makers of spare parts industry including a variety of wiring harness, leaf springs, nuts, bolts, and washers to fit cars, trucks, and SUVs offer Ascent a foothold in the market and opportunity to expand.
The deal in partnership with SFC Finance Limited will offer to finance product expansion and factory improvements.
“SFC has come in as a debt partner and the Ascent Rift Valley Fund will provide equity in this transaction,” said David Owino, Partner at Ascent Capital Advisory Services LLP.
The assembly industry in Kenya is growing with the entry of major international players looking to turn around the local car assembly industry.
Last year, Peugeot announced the re-opening of its car assembly facility targeting production over 1,000 units annually. Volkswagen has also begun production at Kenya Vehicle Manufacturers plant in Thika.
Last September, Simba Corporation took full control of Mombasa-based, Associated Vehicle Assemblers (AVA), with plans to expand production with clients such as Toyota Kenya, Scania, Tata and Volvo on board. This year Foton Motors re-entered the market and has joined the assembly line at AVA.
With favorable economic policies, Kenya has become the ideal hub for automotive manufacturers to gain entry into East and Central African region and grow their business. Auto Springs is positioning itself to serve this growing sector.
