Sephaku Holdings (SepHold) has announced the completion of its acquisition of the entire issued share capital of Métier Mixed Concrete for R365-million.
Métier will now become a subsidiary of SepHold.
Métier is a supplier of ready-mixed concrete products, ranging from standard concrete to grouts, mortars, fibre-reinforced concrete and polished concrete to coloured concrete. The company has a full-service technical division, provides a concrete-pumping service and has the capacity to supply specialised concrete to the higher end of the market.
“This acquisition is a valuable addition to the SepHold asset base,” says SepHold CEO Lelau Mohuba. “Métier has a significant footprint in KwaZulu-Natal, and supports SepHold’s strategy of vertical integration.
“Together with our 36% holding in South African cement manufacturer Sephaku Cement, Métier adds another valuable link to our developing African infrastructure and construction value chain and has the added benefit of immediate cash flows. [In return], SepHold provides Métier with critical mass and access to capital.”
Sephaku Cement is developing a cement production facility at Aganang, in the North West, which will have an estimated production capacity of 1.2-million tons a year.
In addition, it is developing a grinding facility at Delmas, in Mpumalanga, with an estimated production capacity of 1.4-million tons of cement a year.
The Métier purchase consideration will be settled in two tranches through a combination of cash payments and shares in SepHold.
The first tranche of the transaction consideration was settled on February 28, with the second tranche to be settled on December 1, 2014.
SepHold shareholders approved the acquisition in January.