Acquire a distributor of speciality chemicals, with an established customer base in the mining sector.
Energy & Power; Environmental, Waste & Recycling
Our client is a distributor of speciality mining chemicals and water treatment chemicals, providing technical laboratory services as well as export logistics into Sub-Saharan Africa. The company offers a range of speciality chemicals applicable to metal and mineral extraction and is a prevalent supplier of activated carbon, sodium cyanide, and caustic soda to the mining industry. The company has a well-established customer base of blue-chip mining houses.
- Providing niche chemicals for mineral and gas extraction, and liquid filtration.
- Well-established in the mining sector, a market with significant barriers to entry.
- A reliable local and international supply chain for high-quality chemicals.
- Key supplier of abundantly used chemicals, with a longstanding reputation of excellence ensuring repeat business.
- Established vendor relationships with blue-chip customers across Sub-Saharan Africa.
- Skilled staff with experience in technical mining, chemistry and international logistics.
- With an in-house laboratory and chemists, the company controls product quality and provides testing, mixing and dosing systems.
- The adsorbent chemicals purify liquids and gases and are used in several other markets, representing significant opportunities for diversification.
- Though the company already has an established customer base across Sub-Saharan Africa, direct sales approaches and increased marketing into Africa would further bolster its geographic reach. Establishing a dealer network or regional offices would significantly increase sales across the continent.
- The company plans to expand deeper into the water treatment industry with specialised flocculants and activated carbons, available from existing suppliers. Decreasing water quality in South Africa will continue to make filtration necessary, from the purification of potable water to cleansing municipal and industrial wastewater, and the company's supply chain is well-positioned to service this need.
- Though the mining industry is the largest user of the company’s main product lines, sodium cyanide, activated carbon and caustic soda, the chemicals also have application in several other industries, such as industrial manufacturing, smelting, atmospheric control, the food and beverage industry and more.
Gauteng Province, South Africa
- Water Treatment
The property occupied by the company is owned by the shareholder in a separate entity. The 23000m² property is purpose-built for the company, with 1150m² under-roof storage and office space, truck loading areas and a weighbridge.