MATERIALS supplier Afrimat has acquired 100% of the issued ordinary share capital of SA Block and its 100%-owned subsidiary, Clinker Supplies, for R123,5m, in line with its strategy of seeking out new avenues for growth.
Afrimat CEO Andries van Heerden said yesterday the acquisition presented a "unique" opportunity to generate further revenue through new product development, as well as a refined, focused marketing strategy. He said the Clinker group had a profit after tax of R30 m, which would equate to a return on equity for Afrimat of 24% a year.
Mr van Heerden said the acquisition also provided Afrimat with a hedge against the volatile, cyclical nature of the aggregates industry. "Due to clinker’s distinct characteristics, which are difficult to substitute, it has proven resistant to market fluctuations," he said.
Clinker is involved in the extraction of clinker raw material from various stockpiles and the processing into products of various specifications, primarily for use in the concrete manufacturing industry.
Its key operations are close to Vereeniging and Sasolburg, with support services based in Alrode. Mr van Heerden said there was a Clinker operation close to the recently acquired Glen Douglas Mine, creating "exciting" synergy opportunities.
Afrimat, which operates 25 open-cast mines, one metallurgical dolomite mine and six sand mines, said its strategy was to focus on small-scale infrastructure projects.
Mr van Heerden said the group was well positioned, given its cash-flush position and some acquisition opportunities.
Afrimat, which operates 18 ready-mix concrete plants, eight precast concrete brick and block factories, also offers transport, drilling and blasting services.
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