JSE-listed AECI will acquire South African asphalt producer Much Asphalt for R2.27-billion.
“Much Asphalt has a market-leading position, with long-established customer relationships, a robust order book and project pipeline, and a highly experienced management team,” AECI said in a statement last week.
Much Asphalt will operate as a standalone entity in the AECI group.
It has 17 static plants, four mobile asphalt plants, three static emulsion/modified binder facilities and a bitumen converter across South Africa.
It also has one static asphalt plant in Namibia and employs more than 500 people and its production capacity represents over 50% of South Africa’s installed asphalt capacity.
“Spend on roads in South Africa has increased at a compound annual growth rate of 12.7% over the past six years, evidence of government’s commitment to infrastructure development,” AECI CEO Mark Dytor said.
As set out in the 2017 budget review, government and State-owned companies plan to spend R327.7-billion on transport and logistics over the medium term.