Acquire a provider of technical solutions and specialised chemicals to the mining and water treatment industries.

Gauteng
Industrial & Manufacturing
Client Code: BN000030040
Turnover (Forecast): R33,877,737
EBITDA (Forecast): R705,240

The company provides on-site technical services, including training and maintenance services, such as the replacement of filter media at breweries, gas filtration plants and water treatment facilities. The primary product range is activated carbon, which has various applications in water treatment, beverage manufacturing and mining, and it stocks a range of supporting chemicals and products for its clients in the same industries.

Key Aspects
  • Providing specialised technical services and a niche range of chemicals for adsorbing and purifying liquids and gases
  • The company is well-established in the mining sector, with customers across Southern Africa, and has a growing customer base in water treatment and the beverage industry.
  • Recurring revenue through ongoing contracts, and long-standing vendor relationships with blue-chip customers.
  • The company has robust internal systems for administration, quality control and logistics, ensuring a continuous supply of chemicals.
  • The company complies with all regulations for trading in the mining and water treatment industries.
  • A skilled technical workforce provides customers with expert technical support, including consultation on product applications and troubleshooting; assisting in maximising customers’ mineral and gas extraction or liquid filtration.
  • The company designs and supplies custom equipment for gold extraction and water treatment.
Opportunities
  • There is an opportunity for growth in the South African marketplace, with growing local beverage manufacturers and large international players entering the market.
  • Though the company already has an established customer base across Southern Africa, a targeted direct sales and marketing approach or increased presence at mining and water treatment expos would further bolster its geographic reach.
  • Furthermore, establishing a dealer network or regional offices would significantly increase sales across the continent. 
  • Decreasing water quality in South Africa will continue to make water filtration necessary. From the purification of potable water to cleansing municipal and industrial wastewater, the company's products and equipment are an integral part of the process. 
  • Gas filtrations units in Solar-powered plants represent a synergistic product that the company plans to introduce.
  • There are further opportunities in the printing industry, where adhesive gases are filtered with Activated Carbon to recover valuable solvents.  
Current Markets

The company supplies directly to end-users in the mining sector, the beverage and water industry, as well as the broader manufacturing industry that requires filtration of water and waste-water.

The majority of the company's customers are in South Africa, but the company also has relationships with 3rd party agents in Africa.

Potential Markets

An acquirer with an appetite to expand into Africa will be well-equipped to leverage the existing relationships, quality range of chemicals and products, and a reliable supply chain to do so.