Steel products group Argent Industrial has acquired the UK-based Standmode Group for R159.3m.
The transaction, done through Argent’s subsidiary, Argent Industrial UK, was an opportunity for the group to grow its business by further diversifying its portfolio of companies and expand internationally into the UK, it said in a statement on Monday.
It will acquire the entire issued share capital of Standmode and its 100%-held subsidiary Mersey Container Services for about £6.9m (R159.3m).
Standmode’s subsidiary manufactures modular buildings, offices, mess units, toilet and shower blocks. These can be stacked or linked units depending on customers’ requirements.
The cash payment consists of £1m for the value of the property owned by the holding company and £5.89m for the value of the attributable profits after tax at a price-to-earnings ratio of 4.9.
The completion date of the transaction is August 16.
Business Day reported in June 2023 that Argent said it would increase its offshore exposure, which would be achieved by acquisitions, expanding current operations and exports. It lamented the “mess” of local markets driven by the then-ruling ANC and said it was ramping up its strategy to focus on offshore growth.
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.