Sjoerd Douwenga
Metair Investments, the JSE-listed manufacturer and distributor of automotive products, has announced the acquisition of UK-based Dynamic Batteries Services for R31-million in cash.Dynamic is a distributor of lead acid and specialist batteries, with an estimated 4% market share in the UK.
The acquisition is aligned with Metair’s globalisation strategy, as it will facilitate the supply of Metair batteries into the UK market, while also supporting distribution to major original equipment manufacturer (OEM or vehicle manufacturer) customers.
“The acquisition of Dynamic gives us an entry into the UK market and fits our strategy to nurture the original equipment business, where barriers to entry are high,” comments Metair financial director Sjoerd Douwenga.
“[It also] assists us to expand Metair’s OEM customer base internationally.”
The acquisition should also provide the group with a base to take advantage of distribution opportunities across the region.
“We are confident that Dynamic’s current volumes of around 200 000 units per year can be increased to 500 000 over time, through closer relationships with OEM customers and the introduction of additional products supplied through our Turkish and Romanian manufacturing operations,” notes Douwenga.
The acquisition should, therefore, also enable Metair to improve capacity utilisation at its manufacturing operations in Turkey (Mutlu Akü) and Romania (Rombat).
Dynamic specialises in direct sales and owns three distribution centres in England, in Skelmersdale, Durham and Trowbridge.
Dynamic was established in the UK in 1993 by the Altron Group subsidiary, Powertech Battery Group, to distribute batteries in the UK and Europe.