Diversified industrial engineering group PSV has sold Group Line Projects, an industrial lining solutions provider, to a subsidiary of mining holding company Assore for R35-million.
Group Line’s core business is vested in the specification, selection and installation of lining products to solve a variety of materials handling flow and wear problems.
“Traditionally the earnings of Group Line have not been smooth due to the project nature of the business and PSV felt that a phased conversion to annuity-type income would strengthen the company’s business model. Given the current economic climate, the price received for Group Line is extremely attractive to PSV,” said CEO Abie da Silva.
He added that the acquisition of Turbo Agencies would offset the loss of revenue from Group Line.
The Group Line transaction is subject to certain conditions, including shareholder approval.