Diversified chemicals manufacturer Rolfes will acquire the businesses of water purification company PWM Group for R54.1-million in a cash-and-share deal.
Some 70% of the consideration would be settled in cash, and the balance through the issue of shares in subsidiary, Rolfes Newco.
The agreement would see Rolfes acquiring all PWM subsidiaries for R20.8-million, water purification and treatment company Anticor for R11.1-million, manufacturing chemicals provider Goschem for R2.1-million, as well as 70% of chemical and equipment importer Tetralon Chemical Consultancy for R14-million.
Rolfes believed the acquisition would provide it with an opportunity to gain entry into the water, chemicals and treatment sector, as well as add a new range of chemical products and associated services to the group’s existing product basket.
The acquisition also formed part of Rolfes’ long-term strategy to offer a complete basket of chemical products to a spectrum of industries and would assist the group in securing additional business for its African exports.
The businesses of PWM and its associated companies would, for at least three years, continue to be managed by certain key members of the current management team on a standalone basis, as was the case with other Rolfes subsidiaries.
Rolfes would then, through the business acumen of group management, determine the long-term strategy of these subsidiaries, and provide them with treasury, human resources, information technology, legal and finance support functions.