Invicta Holdings said on Tuesday that its subsidiary company, Bearing Man Group (BGM), has entered into a long-term agreement with Fenner Conveyor Belting to distribute Fenner's products in sub-Saharan Africa on an exclusive basis and on a nonexclusive basis in the rest of Africa.
Invicta is an investment holding and management company controlling and managing assets worth more than R14-billion. It has interests in engineering solutions, capital equipment and building supplies.
In terms of the deal, Fenner’s South African conveyor belt plant will supply BMG with conveyor belting for South Africa and the other specified territories.
Fenner designs and manufactures conveyor belts for mining and heavy duty industrial applications. It offers steel cord conveyor belts and fire resistant conveyor belting products.
BMG will also acquire the Engineered Conveyor Solutions (ECS) service operations and related assets of Fenner in South Africa.
“The transaction is an exciting opportunity for both BMG and Fenner to further strengthen the existing long-term relationship between the respective companies,” Invicta said in a statement.
“The transaction will enable both BMG and Fenner to harness their respective strengths and develop sales opportunities in South Africa and the wider sub-Saharan territories for conveyor belting, using the well-respected and well-established branch and distributor network operated by BMG.”
The transaction is conditional on clearance from the relevant competition authorities.
Last month, Invicta reported exceptional results for the year ended March 31, 2017 with operating profit before foreign exchange movements increasing by 35.9% to R1.16-billion from R853-million in 2016.