Logistics and fleet management company Afrirent Holdings has bulked up its portfolio with the purchase of bus manufacturing group Busmark, hoping to turn around the fortunes of the company that went into business rescue five years ago.
Busmark, which has been in operation since 1973, partners with leading local and international original equipment manufacturers to design, build, maintain and service buses in South Africa — using local funding, skilled labour and materials.
Afriment emerged as a buyer for Busmark, after a competitive process, in a deal supported by the Industrial Development Corporation, being the majority secured creditor of the company.
The transaction will see the IDC exit its exposure in Busmark, leaving the growth-hungry Afrirent as the sole owner of the company.
Afrirent founder and executive chair Senzo Tsabedze said the transaction marked a milestone in Afrirent’s strategic expansion, integrating high-capacity vehicle manufacturing into its existing suite of fleet management, telematics and logistics services.
He said by acquiring Busmark, Afrirent had secured a strategic role in the domestic transport infrastructure value chain, ensuring the continuity of a premier South African original equipment manufacturer partner.
“This acquisition is more than a business transaction; it is a commitment to the future of South African manufacturing,” said Tsabedze.
“By bringing Busmark into our group, we are not only diversifying our service offering but also ensuring that a critical player in our nation’s transport sector can continue to innovate and deliver world-class vehicles.”
The Competition Commission has given the deal its unconditional approval.
Afrirent is widely recognised for its expertise in comprehensive fleet management and logistics solutions for both public and private sectors. It also excels in the maintenance services for light and freight vehicles, as well as cutting-edge data-driven fleet monitoring.
“Under Afrirent’s leadership, the company will transition from the control of business rescue practitioners to a stable, long-term growth environment, safeguarding its industrial capacity and expertise and preventing the loss of jobs,” Tsabedze said.
“Afrirent is also highly appreciative of the role that the Industrial Development Corporation of South Africa [has played in supporting] Busmark through the business rescue process and the manner in which it has supported the conclusion of this transaction.”
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