Engineering News

Specialised chemical services company Omnia, providing customised solutions in the agricultural, mining and industrial chemical markets, was successful in its bid to acquire the largest distributor and trader of chemicals in South Africa, the Prochem group. Prochem is the distributor for a number of domestic and international companies, representing many of the world’s leading chemical companies. It also has a diverse base of more than 6 000 customers, 6 000 products and more than 100 suppliers, with no disproportionate contribution from any one customer or supplier.

The company also has a number of well-known brands in its stable, such as Protea Chemicals, Chempro, Montan Chemicals and Duravin Chemicals. Further, Prochem has developed an excellent and competitive national infrastructure, with 12 distribution points throughout South Africa. The shareholders at the special general meeting approved the transaction, and all conditions precedent to the acquisition have now been fulfilled.

Commenting on the transaction Omnia MD Rod Humphris said: “This presents a quantum leap in size, not only for the industrial chemical business, but also for the Omnia group as a whole. “We now have a more diversified portfolio of businesses, with a better balance between the agricultural and chemical interests. “Further, it will support and strengthen our long-term sustainable growth plan and enable us to continue redu-cing earnings and cash-flow volatility, as well as limit weather-related risk.

“This acquisition gives our industrial chemicals business the critical mass it has lacked to date and will generate additional opportunities in this area. “It will also provide an established chemical distribution network across South Africa, serving to strengthen our interface with customers. “Our strong platform through this acquisition will allow us to position the group for continued sustainable growth and earnings into the future,” Humphris concluded.