Business Description
This 28-year-old business supplies spare parts for all the well-known OEM mining machinery equipment in its niche.
Their major competitors are very big global companies that are nowhere as flexible to market shifts as they are and only service their brand of equipment. They serve virtually all major international brands present in the region including Namibia, Angola, Botswana, Zimbabwe, Zambia, Mocambique and Tanzania. hey are regarded as a main supplier by the most active and biggest operators in the industry and are a dominant player in the market they serve.
They are not a manufacturer but rather have their products manufactured by companies in South Africa, India and China to their IP and specifications. The business is thus NOT suitable for IDC funding.
They own three properties they operate from. Two of the properties are in a property company and the third is an asset in the company balance sheet. The properties are for sale with the business or can be rented on a long-term lease.
They are currently B-BEE level 2 rated, which is critical to the industry they serve.
Their brand become highly recognized and well-known in the industry. They have over the past two years developed a new range of high-value products and have been very successful in supplying to small operating companies, but also to mining giants. The units have not only added value to their cash flow but also to their profit margins. They have seen an uptick in infrastructure investments and are ideally suited for growth in not only that space but also other niches of mining and the mining industry in general.
Transaction Information
The owner will remain on for a minimum of three years and also have a succession plan in place.
Asking price: R300,000,000
