Acquire a turnkey mechanical engineering specialist with blue-chip customers in the industrial and mining sectors.

Gauteng
Industrial & Manufacturing
Client Code: BM008079
Turnover (Management): R163,488,528
EBITDA (Management): R18,714,503

Our client is a specialist engineering company with a niche in mechanical components and assemblies with industrial and mining applications. The company has significant in-house capabilities, from rebuilding individual components to designing, manufacturing, installing and commissioning large-scale infrastructural projects, such as mining conveyor gearboxes. The well-established customer base comprises opencast and underground mines, project management houses and other industrial customers across Africa.

Key Aspects
  • A loyal, blue-chip customer base in the mining and industrial sectors.
  • Highly experienced in designing and manufacturing large-scale gearboxes.
  • Considerable precision engineering abilities across industries.
  • A well-established brand, built over many years in operation.
  • Significant in-house abilities enable the company to provide a turnkey service.
  • Well-entrenched in the mining industry, doing infrastructural mechanical projects, asset management and more.
  • Robust quality assurance systems include ISO adherence.
  • Ability to work across Africa, representing current and future growth.
  • Consistent year-on-year sales growth, only marginally affected by Covid-19.
  • Advanced machine centres enable the company to machine large yet intricate components over 5-axes of motion.
Opportunities
  • Increased capabilities: The company's newest machine acquisition, a 5-Axis machine centre, has significantly expanded its capabilities, including the in-house production of special gears, previously outsourced. Producing these parts in-house is significantly increasing profit margins on these items and reducing production time.  
  • Product diversification: The company consistently improves designs of drive train products and plans to increase its capabilities to produce even more giant girth gears and pinions.
  • International projects: The company's current focus is on the mining sector due to its growth across Africa. The company plans to continue developing its relationships in the marketplace and seeking out new ones. 
  • Direct tendering: If an acquirer were to improve its BEE preference score through ownership, the business could benefit from increased direct-tender success in South Africa.
  • Market diversification: Though it has specialised skills in drive trains and mining, the company is, at its core, an engineering job-shop with significant in-house capabilities, applicable to any number of industries.
Current Markets
  • The primary sectors that the company operates in are: Mineral processing (gold, copper, platinum, coal, etc)
  • Paper & Pulp
  • Sugar & Starch
  • Aggregate
  • Steelmaking
  • Marine