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Ethos Mid Market Fund I invests into Gammatek

  • Ethos-led consortium acquires 60% shareholding: 51% Ethos Mid Market Fund I and 9% Eskom Pension & Provident Fund

  • Strategic vision to grow product offerings, enhance sales force and expand into the rest of Africa

Ethos Mid Market Fund I (‘EMMF I’), today announced the closing of a c.60% investment into South African-based consumer technology distributor, Gammatek. The transaction marks the Fund’s seventh investment in 18 months.

The Ethos-led consortium comprises: EMMF I, with a 51% shareholding, and Eskom Pension & Provident Fund (“EPPF”), with a 9% stake. Gammatek management hold the remainder.

Established in 1998 by Gary Tooch and partner Warren Berman, Gammatek is the leading mobile device accessory distributor in South Africa, with an estimated 50% share in its chosen markets.

Edward Pitsi, Managing Partner of Ethos Mid Market Fund I, stated:

“Gammatek is recognised and valued by its suppliers as a top global distributor and is trusted with their brands. Our investment will enable the business to continue its growth trajectory and facilitate market penetration into the rest of Africa where we see meaningful potential – all while continuing to offer service excellence to existing and prospective customers.

Gary, Warren and their team have built an exceptional platform. Together, we plan to optimise and scale the current operations to enhance sales capacity, while accelerating the rollout of newly introduced products into new channels. We have a shared strategic vision and are excited to be part of Gammatek’s next phase of growth.”

Gary Tooch, Gammatek CEO, added:

“For 20 years, Warren and I have been business partners; we’ve grown Gammatek from an entrepreneurial dream into a commercial reality. Identifying an aligned strategic investor – who supports our growth vision – is a critical milestone for our business.

Over the past few months, we have been extremely impressed by the investment and commercial acumen of the Ethos Mid Market team. Over this time, we’ve built a trusted relationship, which I know will be critical to our future success. We share a growth-mind set, respect for business diligence and ethical standards, plus a passion for relevant African business. I firmly believe we have chosen the best partners for our growth plan.”

Titi Sekhukhune, Ethos Mid Market Principal, concluded:

“Gammatek continues the Ethos Mid Market Fund’s stated strategy of investing into businesses where we believe we can accelerate growth. We are proud to have partnered EPPF in this transaction, which sits squarely within our mid-market investment strategy.

As the seventh investment in under 18 months, we remain encouraged by the number of quality opportunities we are assessing, together with the momentum of our capital deployment. We believe this is testament to the Fund’s unique combination of proven institutional investing and value-adding capacity, coupled with sustainable black economic empowerment solutions and transformational impact. ”

As an importer, distributor and manufacturer of mobile device accessories and low-technology consumer products, Gammatek represents many leading brands, including: Body Glove, (*)Speck, UAG, Snug, Funko, and Solo. They supply these products to leading South African clients, including Vodacom, Chatz, Incredible Connections, Core Group’s iStores and Musica.

The transaction is not subject to any outstanding regulatory approvals or conditions precedent.


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