Le-Sel Research (Pty) Ltd ("Le-Sel or the Company") announced today that following a detailed and thorough due diligence process, the Industrial Development Corporation ("IDC"), has approved an investment of R157.5m in Le-Sel to support future growth and respond to working capital challenges of the Company. Founders of Le-Sel, the Frodsham Family, remain fully committed through the retention of their investment and with continued involvement in the management of the business. Trinitas Fund General Partner (Pty) Ltd retain representation on the Board and have agreed to invest a further R10m in the business. The IDC will have the right to representation on the Board of the Company and will be involved in ensuring the delivery of their strategic initiatives through management.
Le-Sel produces more than 6 million units of personal care products every month for many local and multi-national companies, products that can be found in every retailer and are used by millions of people in South Africa and on the African continent every day. Employing more than 500 people directly, Le-Sel also impacts the lives of many more people at its many suppliers in South Africa.
The investment by the IDC in Le-Sel signals its long term intention to develop a globally competitive consumer products manufacturing industry in South Africa, to serve both local and multi-national home and personal care brand owners. The investment in Le-Sel will support local manufacture by multi-national brand owners, facilitate regional integration by unlocking latent manufacturing capacity to promote the export of finished goods and create new direct and indirect jobs.