Construction and engineering group Murray & Roberts’ (M&R’s) hot mix asphalt supplier unit Much Asphalt will venture out as an independent entity after its acquisition by a Capitalworks Private Equity-led consortium.

The unit would, however, continue with existing strategies when it separates from its parent company on November 1.

The deal was the first of four in a R1.15-billion bid announced in June that saw M&R dispose of four construction products businesses to various consortiums, as part of an ongoing strategic repositioning of M&R.

“The change in ownership will give us more flexibility in managing our own destiny. The focus will be exclusively on the asphalt business and in continuing to be innovative in providing high-quality products and exceptional service to our customers,” explained Much Asphalt MD Bennie Greyling.

The consortium, comprising Capitalworks, 100% black-owned investment company Mineworkers Investment Company (MIC) and senior executives of Much Asphalt, invested in the company on the basis of Much Asphalt’s long and profitable record and would not make any management or strategic changes.

The new owners would, however, provide strategic direction to the company and leverage Much Asphalt’s vast geographic footprint, product innovation and capacity to reduce the cost of building and maintaining South Africa’s roads.

Much Asphalt has 17 static asphalt mixing plants in all South Africa’s major centres and three mobile plants, which are available to service remote projects. The firm also has a share in Specialised Road Technology Laboratories and a 55% stake in East Coast Asphalt.

“We are looking forward to the input of our new partners, Capitalworks and MIC, in our ongoing quest to strategically position static and mobile asphalt plants in the developing regions of South Africa and sub-Saharan Africa,” said Greyling.

“The focus of the investment will be to strengthen the long-term growth prospects of the company,” said Capitalworks partner Garth Willis, adding that Capitalworks was actively seeking further acquisitions to add to its private equity portfolio.