Kenyan-based private equity firm, Catalyst Principal Partners has acquired majority stake in Tanzanian heavy equipment rental and logistics firm, EFFCO.

Although details of the deal were not disclosed, the Eastern African-focused investment company usually invests between $5 million to $20 million into deals with an average investment period of 4 to 6 years.

“We see great growth potential in EFFCO. We are impressed with the range and sophistication of services they offer blue chip companies across industrial, construction, mining and oil and gas sectors – all high-growth areas with significant demand and potential for the specialized best-in-class services and health and safety standards that EFFCO can provide,” said Catalyst’s MD, Rajal Upadhyaya.

The acquisition is Catalyst’s fourth since raising a $125million private equity fund focused on investing in East Africa.

EFFCO Group CEO George Miseda expressed high hopes following the new deal, saying it opens new frontiers for the company.

“Catalyst’s ability to add value, its active investment approach and extensive networks will allow us to rapidly scale up our operations and expand the business to take a leading positioning in Tanzania and across the rest of the east African region,” Miseda added.

Tanzania has enjoyed investments from Catalyst Partners in recent times. The company invested in leading personal and oral care manufacturer, ChemiCotex in 2011 as well as Chai Bora, the largest tea packaging firm in the country, acquiring a 95 percent stake. It also acquired a 50 percent stake in Ethiopia’s Yes brands.