Photo by: Duane Daws
Manufacturer, distributor and retailer of energy storage solutions and automotive components, Metair, announced on Monday that it had acquired 25% of Kenya-based Associated Battery Manufacturers East Africa (Abmeal), and its subsidiaries, at a price tag of $7.3-million.
“This transaction ticked critical boxes for us as it expands our capabilities in the renewable-energy field, which is a key growth area of our energy storage business globally,” said Metair MD Theo Loock.
“Abmeal’s solar business is particularly exciting and we believe that there are significant synergies to explore.”
Established in 1963, Abmeal is the largest lead acid battery manufacturer in East and Central Africa, with a 60% market share in Kenya and a total production capacity of one-million batteries a year.
The group’s primary business is the manufacture of batteries under the Chloride Exide brand, which Metair owned in South Africa.
Kenya, as a manufacturing destination, formed part of the Common Market for Eastern and Southern Africa, which provided Metair with access to a number of new markets.
Solinc, one of Abmeal’s subsidiaries, specialised in the manufacture of solar panels.
This was significant in terms of Metair’s focus on energy storage and the growing need for renewable-energy sources globally.
Solar panels were sold and distributed with solar batteries produced by Abmeal.
The market for this technology in the region was growing, with Solinc increasingly contributing to Abmeal’s performance, said Metair in a statement.
The Abmeal business is fully integrated, with its own lead recycling facilities supplying 100% of its raw lead material needs, and a plastic manufacturing subsidiary that supplied its battery casings, the company added.
Abmeal’s subsidiaries marketed, sold and distributed the batteries throughout the region, including Tanzania and Uganda, where they owned distribution centres.
“We look forward to working with Abmeal’s strong management to leverage their well-established regional network, grow other markets and strengthen business relationships, especially where automotive manufacturers have a presence,” said Loock.
He highlighted the fact that the transaction enabled Metair to establish a strong position in the growing East African market, which was attracting interest from a number of international market participants, with Abmeal’s proximity to North Africa opening up an alternative route to supply vehicle manufacturers in that region.
Metair said its intellectual property would, over time, be transferred to Abmeal to “improve efficiencies and grow the maintenance-free battery market in East Africa”.