Profitable group of companies producing industrial and end-user chemical products

South Africa
Industrial & Manufacturing
Client Code: BM003621
Turnover (Actual): R234,864,748
EBITDA (Actual): R14,978,363

A robust and proven group of companies producing industrial, timber treatment and end-user chemical products. Companies within the group supply different markets, which include the wood treatment industry, chemical manufacturers, retail hardware chains, and the hospitality industry. Value added services such as toll manufacturing, blending and decanting, packing, and chemical and technical advice and assistance extend the offering.

Key Aspects
  • A profitable group of companies with annually increasing margins
  • Unique IP derived from three decades of expertise in the chemicals sector
  • Direct and instant access to an extensive client base across South Africa
  • A newly formed company based in the Netherlands provides a route-to-market for exporting products, which represents a significant opportunity for growth
  • The product brands have strong recognition in the marketplace; an acquirer could confidently introduce new products through this channel and the existing infrastructure
  • Existing SANS and ISO accreditations to quality, environmental and health & safety standards, as well as hard-to-come by permits
  • Established systems and processes in place, with a highly skilled and capable management team
  • Expert production staff with deep industry experience
  • The potential exists to generate more generous returns through access to greater infrastructure, back-office support and capital.
  • An export base from which to penetrate international markets has recently been established, and shows great promise in developing this revenue stream.
  • New products that can be developed for the individual group companies include industrial fuel oils for furnace and boiler applications, a greater range of retail hardware products, and growing the lamp oil market.
  • Manufacturing and distribution of one company is being supplemented by Gauteng operations to better service the greater Gauteng market.
  • An opportunity for growth exists to expand the retail end-user chemical products into larger market segments in South Africa. The company can leverage their existing strong and diverse customer network for this expansion.
  • Western Cape, with outlets in Gauteng, Free State, Eastern Cape and the Garden Route.
Current Markets
  • Customers are located across South Africa, with recent entry into export markets.
  • Customers include industrial timber treatment companies; chemical manufacturers, processors, finishers and wholesalers; retail hardware stores; and hospitality and catering companies.