May 2012

It's been a busy period at Spirit since our last newsletter. In addition to our ongoing corporate advisory work, we've disposed of two investments and completed one new acquisition, which we are really excited about. It all bodes well for a strong performance in the year ahead.

Spirit Capital Investments

Castledex Business Solutions


Spirit, through its subsidiary Tidy Files, is pleased to announce the acquisition of 50% of Castledex Business Solutions. Castledex provides a range of products and services that transcend the records management process, encompassing hard copy filing products, offsite storage and "active filing services" (through its proprietary software systems that enable customers to access documents held off site).

Tidy Files has established itself as the largest manufacturer and distributor of primary filing products in SA through its nationwide branch network. Castledex's offering is complementary to the products supplied and manufactured by Tidy Files and the opportunity to leverage off Tidy Files' brand, sales capabilities, customer base and skills is expected to benefit both businesses.


Spirit exited two investments towards the end of 2011. We sold our indirect shareholding in Cerebos Salt to a consortium comprising Investec Principal Investments, amongst others. The investment in Cerebos yielded an excellent return. Spirit also exited its indirect shareholding in Xline Aluminium Solutions to Wispeco. We wish to thank both management teams for their efforts over the years and wish them and the new owners all the best for the future.

Corporate Advisory Transactions

Spirit concluded two corporate advisory transactions at the beginning of 2012, acting as corporate advisors to the shareholders of Bobcat SA and CA Sales and Distribution.

Disposal of Bobcat SA


Goscor, a subsidiary of Imperial Holdings Limited, acquired 100% of the shares in Bobcat Equipment SA and Bobcat Equipment Rental SA ("Bobcat SA"). Bobcat SA is a leading supplier of compact equipment into the construction, mining and agricultural sectors and its compact equipment rental business is one of South Africa's largest.

The Bobcat businesses are a natural fit into the Goscor stable, and complement its existing offering of quality products, flexible rentals and superior after sales service.

Acquisition of CA Sales by PSG


PSG has acquired a majority shareholding in CA Sales & Distribution ("CA Sales"). CA Sales is Botswana's largest distributor of FMCG goods, it also operates in Namibia and offers sales and merchandising services through two wholly owned subsidiary companies in South Africa.

The CA Sales businesses offer PSG an opportunity to embark on its strategy of investing in businesses that offer sustainable growth potential in Africa, whilst also complementing a number of PSG's current investment companies.

We are currently evaluating a number of attractive investment opportunities and are engaged in several advisory mandates, which we are confident we'll be able to report on in our next newsletter.

We're also pleased to confirm that once again we have several successful recipients of a "Foul Hook". We'll disclose who they are and share a few photos of our 4th golfing trip to Scotland in our next newsletter.

Until then, keep climbing the ladder one rung at a time!

Best Regards,
Team Spirit

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