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AFRIMAT have acquired Lafarge South Africa Holdings (Pty) Ltd (“LSA”), together with all its subsidiaries (“LSA Group”), topic to the fulfilment of situations precedent regarding the receipt of customary regulatory approvals.
LSA Group, a member of the Holcim Group, is a supplier of building supplies in South Africa, providing an in depth vary of merchandise to the development and infrastructure business, together with aggregates, concrete, cement, and fly-ash.
The acquisition shall be housed in Afrimat’s Building Supplies division, which along with its subsidiaries (“the Afrimat Group”) provide all kinds of aggregates and concrete-based merchandise to the market, and the Afrimat Group, in response to buyer demand, continues to give attention to market and product growth inside this phase.
Talking on the acquisition, Andries van Heerden, CEO of Afrimat stated, “A key focus of Afrimat is our acutely aware operational effectivity initiatives, that are geared toward increasing volumes, decreasing prices, and growing the required talent ranges throughout all staffing classes. This thrilling deal kinds a part of the Afrimat Group’s ongoing diversification technique and can enhance Afrimat’s providing within the building business, by increasing our quarry and readymix operations nationally and permitting for Afrimat to enter the cement worth chain competitively.”
Afrimat is very cash-generative and successfully debt free, permitting this acquisition to be financed largely in money. “We’re assured that this acquisition is an effective use of our money reserves, and following the acquisition, the Afrimat Group’s steadiness sheet will stay wholesome with debt ranges nicely inside our goal vary.”
The acquisition worth for the acquisition of the fairness within the LSA Group is USD6 million, with a further quantity of R900 million in the direction of reimbursement by or on behalf of LSA of an quantity owing by LSA to the Holcim Group. The efficient date of the acquisition is 10 enterprise days after all of the situations precedent have been met.
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