Our client is a unique South African supplier of pumps that are used for transferring corrosive chemicals, primarily in the mining sector. Cost effective material composition, combined with the ability to customise product specifications to client requirements and offer expeditious turnaround times that far surpass competitor imports, distinguishes the company from competitors.

Key aspects

Established brand in possession of numerous vendor accounts with blue-chip customers in the mining sector.

In-house range of pumps, locally manufactured from a variety of composites and alloys in faster than average turn around times.

Continuous product development and customisation of existing pumps enables the company to adapt to the evolving needs of the market.

Ability to scale production without incurring additional expenses.

Complimentary revenue stream from selling spare parts for all pump models.

Burgeoning demand from mines across the African continent underpins potential growth.

Acquire an industry leader with decades of industry experience in glass and plastic printing with a significant asset base of printing machines enabling a wide range of printing techniques to service any clients glass or plastic printing requirements.

Opportunity:

A strategic acquirer who can provide access to new markets and opportunities and create synergies would assist in taking the company to the next growth level.

A partner that can inject capital into the business could unlock growth and efficiencies by upgrading the factory´s machines to allow for a more automated process.

The company could potentially partner with a manufacturer or supplier of glass or plastic bottles. This would mean that a customer could get access to both the physical product as well as printing services under one roof.

An acquirer that could unlock doors into international markets could greatly increase the company’s turnover. In particular, Africa could present a significant growth opportunity.

A focused marketing campaign could further increase demand for the company´s services.

Potential to expand into additional printing services.

Our client manufactures high quality printed and laminated flexible packaging products, using a state of the art flexographic printing process. While clients are predominately bag making companies, the end users of the flexible packaging products are leading retail brands of snack foods, confectionary, dry goods and pet food.

Opportunity:

With a consistently high product demand, the shareholders have identified numerous ways to facilitate growth.

Purchasing additional printers will increase production capacity as the company is operating at capacity.

Expanding the product offering by offering specialised services and buying the machinery for these services will drive growth into new markets.

Currently dominant in the Western Cape market, our client could expand the geographic footprint into other regions across South Africa.

The key driver of growth is financial investment enabling the purchase of new machinery to grow the extent and diversity of the product offering, as well as increasing the staff component with the skills to drive this growth.

The company designs, manufactures and re-conditions a large range of flameproof and non-
flameproof motors, switch gear, transformers, enclosures, and auxiliary equipment for the underground mining industry.

Opportunity:

Diversifying the product offering: already effective in product design and manufacture for the underground mining sector, there is an opportunity to supply other closely-related and synergistic needs to the existing customer base.

Expanding the product range: the company has recently invested in equipment necessary to manufacture different products that are in high demand in mining operations.

Extending capacity: additional capacity is available within the manufacturing workshop to accommodate new projects. Designed to enable growth and meet increased demand, acquirers can leverage the additional capacity available with no capital investment required.

Original Equipment Manufacturing: new market entrants supplying equipment to the mining industry will find the company precisely positioned to manufacture equipment components.

Our client has established itself as a leading manufacturer of mining equipment for fine mineral and coal separation. The company has extensive industry knowledge and through sample testing, it can provide the best-suited solution to ensure the highest material
recovery rate.

Opportunity:

By expanding its geographical footprint in the countries it already serves, the company could easily replicate its current model and increase the customer base.

There is immediately available physical and production capacity to scale the business.

The company has the ability to diversify its product offering into synergetic applications, increasing revenue.

A current ratio of 9 to 1 over the last 4 years highlights the company's strong net asset position and demonstrates the liquidity and solvency position which can accommodate leverage structuring.

Strong second tier management structure in place and intricately involved in the day to day operations of the business which would facilitate a smooth handover.