JSE-listed heavy equipment manufacturer Bell Equipment Company South Africa (Becsa), a subsidiary of Bell Equipment, will acquire Matriarch Equipment for an initial consideration of R3.8-million.
The consideration will also include a further consideration of up to R15-million based on the future sales performance of Matriarch’s products retrospectively per quarter for five years.
Matriarch designs and manufactures a range of materials handling products used predominantly in the forestry and sugar industries across local and international territories.
The intellectual property (IP) of the products designed by Matriarch appeals to the broader strategy of Bell to enhance IP ownership and to provide niche product solutions in the forestry and sugar industries.
Following the acquisition, Becsa will own Matriarch’s inventory as at January 31, the operating assets valued at around R1.3-million and the value of the IP. Becsa will take over the employees of Matriarch.
The transaction is expected to be finalised by February 1.