Investment holding and management company Invicta Holdings will sell four businesses owned by its subsidiary Humulani Marketing to CNH Industrial.
The businesses being sold are Northmec, NHSA, CSE and Landboupart.
If the transaction is approved by the shareholders and the Competition Commission, and it proceeds, it will be effective January 1, 2021.
The consideration for the businesses will be equal to the tangible net asset value of the operations, which is about R507-million, as well as an additional $6-million for goodwill.
Invicta CEO Steven Joffe says the disposal will reduce some of the group’s most expensive debt, thereby realigning its funding structure and enabling the company to focus on other strategic initiatives and core operations.
CNH Industrial is an Italian-American Dutch-domiciled multinational corporation listed on the Nasdaq. The holding company is present in all major markets worldwide and designs, produces and sells agricultural equipment and construction equipment, as well as trucks, commercial vehicles, busses and special vehicles.
CNH Industrial aims to continue with its strategy of having a direct operational footprint and infrastructure in South Africa for the selling of world-class products in both South Africa and the Southern African market.
Further, NHSA is a supplier of original-equipment manufacturer (OEM) and non-OEM spare parts for brands such as Fiat, Ford, Braud, Carraro and NewPart. NHSA’s product range includes tractor parts, combine harvester parts, baler parts, grape harvester parts and axle parts.
Northmec is a supplier of farming equipment in South Africa, distributing a full range of agricultural machinery, implements and related OEM spare parts for many internationally recognised brands. Northmec’s product range includes tractors, mowers, combine harvesters, windrowers, cultivators, grain/corn headers, balers, ploughs and sprayers.
CSE distributes Case earthmoving and construction equipment, turf-grooming machinery, utility vehicles and related OEM spare parts. CSE specialises in distributing Case and Dynapac-branded equipment, including tractor loader backhoes, skid steer loaders, tele-handlers, crawler excavators, front-end loaders and graders.
Landboupart is a distributor of replacement spare parts for the agricultural and industrial markets for brands such as Massey Ferguson, Landini, John Deere, Perkins and Carraro. Landboupart supplies a range of quality agricultural spare parts ranging from tractor parts, engine parts, filters and drivetrains to planter parts.