JSE-listed services, trading and distribution company Bidvest has entered into an agreement to acquire Eqstra Fleet Management and Logistics from JSE-listed industrial group enX for an enterprise value consideration of R3.1-billion.
Eqstra provides full fleet management solutions, including leasing, maintenance, vehicle tracking and insurance, for passenger and commercial vehicles. The company’s footprint spans across sub-Saharan Africa.
The company has around 12 300 vehicles under lease and 120 000 fleet products under management, with leasing assets totalling R2.6-billion and yearly profit after tax averaging R143-million.
After a strategic review, EnX determined that Eqstra would be better suited under a different structure to optimise its value proposition.
EnX believes Bidvest is well positioned to provide Eqstra with value-enhancing opportunities through access to a larger pool of capital at a lower cost and to an existing national motor vehicle distribution network.
Bidvest stated that the acquisition of Eqstra was in line with the group’s strategic intent to focus Bidvest Bank on its fleet management niche. Bidvest said it was positioned to offer a cradle-to-grave fleet solution through Bidvest Bank and the automotive division.