Information on the target
Société Togolaise de Distribution de Gaz (SODIGAZ) is a prominent butane gas bottling company based in Togo. Established to address the significant unmet demand for butane gas in the region, SODIGAZ has successfully positioned itself as a leader in the gas distribution sector. The investment made by Cauris Croissance in June 2009 facilitated the construction of a state-of-the-art butane gas filling center, enhancing the company’s operational capabilities and market reach.
Throughout the investment period, Cauris Management played a pivotal role in SODIGAZ's growth by implementing various strategic initiatives. These included capacity building for staff through training programs in collaboration with other portfolio companies, as well as providing guidance to senior management on performance improvement and strategic development planning.
Industry overview in the target’s specific country
The butane gas industry in Togo has experienced significant growth in recent years, driven by increasing energy demands and a shift towards cleaner energy sources. As the country continues to develop, the need for reliable and affordable energy solutions has become paramount, positioning companies like SODIGAZ at the forefront of this transition. The government has also recognized the importance of the gas sector in its energy strategy, promoting investments and infrastructure development to support this vital industry.
Moreover, the regional market for butane gas is expanding, with neighboring countries also experiencing similar energy demands. This growth presents opportunities for SODIGAZ to not only solidify its market position in Togo but also to explore potential export avenues to adjacent markets. The competitive landscape is evolving, with both local and international players vying for market share, which underscores the importance of operational excellence and strategic partnerships.
In addition, the increasing awareness of environmental issues has led to a greater emphasis on cleaner energy alternatives, further boosting the demand for butane gas. As consumers and businesses alike seek sustainable energy solutions, SODIGAZ is well-positioned to capitalize on these trends, leveraging its established infrastructure and market knowledge to meet the growing needs of its customer base.
The rationale behind the deal The decision to exit from SODIGAZ was driven by the successful realization of the investment's objectives, which included achieving a substantial internal rate of return (IRR) of 34.89% and a cumulative ret…