FidelityServicesGroup

RMB Corvest funded the management buy-out of Fidelity Guards from the Rennies Group in a transaction that saw the management team take control of the security guarding business.

 

The shareholders then embarked on a strategy to build a multi-service guarding, cleaning, hygiene and cash-in-transit business. The business grew from strength to strength over the next 15 years, acquiring Elweirda, Supercare and Springbok Patrols along the way.

Unbundling

In 2005 in a bid to realise value for shareholders and introduce BEE, RMB Corvest facilitated the unbundling of the Group and partly funded the exit of the original management team. The Group was unbundled into guarding, cleaning and hygiene (Supercare) and cash-in-transit. Simultaneously, RMB Corvest funded the introduction of meaningful BEE into the businesses. The unbundling enabled the operational management teams in the different business units to acquire significant shareholding and growth thereafter.

The Fidelity Cash-in-Transit business was sold to UK-based G4S in 2008 and in 2011, the Supercare Services Group was sold to the multinational cleaning business, Compass Group. Both transactions realised significant value for shareholders.

Second round BEE

The Fidelity Security Group, now predominantly a guarding and security services business, continued to grow. During 2012, the original BEE investors needed liquidity and signalled an intention to realise their investment. The Group was re-geared, facilitating shareholder wealth creation, management increased their shareholding in the business and RMB Corvest co-funded the introduction of Shalamuka Capital and New Seasons Holdings as the primary BEE partners. This deal enabled the Fidelity Security Group to retain its black owned status.

RMB Corvest does not have exit timing pressures and continues to be a shareholder in the Fidelity Security Group, illustrating its track record as a long-term investor where it makes commercial and strategic sense.