Sealing products and services supplier Klinger recently concluded an acquisition of 100% of the shares of valves distributor Baars Group.
Klinger CEO Andre Goosen says the acquisition, which took place in October, will be used to leverage more opportunities in the marketplace and provide a more consolidated approach to customers of Klinger and Baars.
“We were aiming to expand our operation in South Africa and, [apart from] looking north of the border for growth opportunities, we searched for another product group. Klinger hasn’t expanded into the valves market in South Africa and we started looking for a suitable acquisition. At the top of the list was Baars Group and it has an excellent product portfolio,” he explains.
Klinger will continue to run Baars as an independent company, owing to its good reputation, says Goosen.
He states that Klinger has established a presence north of the border and Baars is considering opportunities in that direction.
Further, Klinger has a strong presence in the petrochemicals industry and although Baars is well known for the supply of valves in the industry, the company is not contracted to players in the industry; therefore, a joint approach is intended.
Baars Group MD Mynhardt Baars says he is hopeful the acquisition will stimulate new ideas and create a united front in the market.
“We want joint benefits to overlap between the companies. There will be improvements and learning from Klinger’s methods will result in a healthy future. Further, our products are value for money,” he says.
Goosen adds that there will be opportunities to add more products to Baars’ valves portfolio, as Klinger Europe is renowned for the manufacture and sales of a wide variety of fluid control products.
“The two companies are regarded in the marketplace as suppliers of quality products that are fit for purpose. We like to offer engineered solutions for customers’ problems and needs. Customers in the Democratic Republic of Congo and Zambia want suppliers to provide a broader range of products. The companies’ products are synergistic, [and this provides] a good opportunity to give customers a wider range of products,” he concludes.