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2Roads has expanded its ownership and participation in the process flow value chain by acquiring a 51% stake in AWT. AWT is a specialist welding and machining company, capable of welding and machining a wide variety of metals including basic carbon steels, low alloy steels, stainless steels and aluminium. The official announcement was made at the 2Roads head office in Illovo, on Wednesday, 13 January 2022.
AWT is a natural fit into the 2Roads Group’s portfolio, as it expands its current service offering to the industry. The acquisition is also in line with the Group’s strategy to invest in businesses that deliver superior earnings and dividend growth over the long term.
“AWT is a bolt-on acquisition in line with 2Roads’ process flow value chain approach. The acquisition expands the service offering to various clients, especially, within the high pressure and high temperature sector. It also positions 2Roads as one of the largest specialised welding and engineering firms in the country,” said Kagisho Bapela, Executive for Strategy, Mergers & Acquisitions at the 2Roads Group.
Bapela also added that the end goal is to offer a comprehensive asset integrity management of products and services to target clients. AWT adds to the current service offering and complements existing products and services.
In addition, the acquisition enables the 2Roads Group to establish a fully-fledged training centre that will offer skills development and vocational training, as the welding techniques performed by AWT, are unique and in high demand.
Founded in 1987 by Johnny Hattingh and subsequently bought in 2005 by Ross and June Tudhope, AWT is an essential services Service Provider, providing specialised welding for turbine valve components and rebuilding parts machined to tight tolerances. Only a handful of companies in South Africa have this capability.
“The fit of AWT in the structure of 2Roads is an exciting development for the future growth of the company. The combination of the 2Roads Group of companies, with the markets AWT serves, is a powerful one and one which will substantially extend the capabilities of the Group as well as providing synergies within it,” said Ross Tudhope, CEO of AWT.