Industrial holding and management company Invicta has bought a 50% stake in aftermarket heavy-duty diesel engine parts supplier KMP Far East (KMPFE) in Singapore, as part of its diversification drive into new regions.
The company, chaired by business tycoon Christo Wiese, said subsidiary KMP Holdings, which is part of Invicta’s replacement parts earthmoving (RPE) segment, acquired 50% of the share capital of the company established in 2005.
The effective date of the transaction was April 1, but the announcement was made on Monday and the price Invicta paid for KMP Far East, whose main distribution facilities are in Singapore and neighbouring Malaysia, was not disclosed.
Invicta, valued at about R2.9bn on the JSE, said part of its strategy is also to move into markets and industries in which it has “significant experience and strong management capabilities”.
“As such, with the acquisition of KMP in January 2022, which has operations in the UK and the US, the natural progression was to acquire KMPFE,” the company said.
“Following the transaction, Invicta will benefit from securing the KMP Brand on a worldwide basis, the cross pollination of skills and economies of scale in the distribution of KMP Brand products globally,” it added.
Invicta CEO Steven Joffe told Business Day last month that it wanted to grow internationally as it benefited from the weaker rand and to reduce the effects of the muted SA market.
It is seeing a resurgence in mining in Democratic Republic of Congo (DRC) while it continues to operate in Mozambique, and is performing well, particularly on the east coast.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.