Acquire a well-established service provider and distributor offering niche excavation equipment for the construction & mining sectors.

Gauteng, South Africa
Construction
Client Code: BM002273
Turnover (Forecast): R55,990,632
EBITDA (Forecast): R33,340,475

The primary revenue stream is plant-hire, servicing the mining and construction industries as specialists in hammers, rippers and rock wheel excavating attachments. They are uniquely adept at optimising the operation of these hard-working components, with well-trained staff operating and maintaining the equipment. They also have product-sales revenue, as agents for high-quality OEM brands, stocking and distributing attachments and parts.

Key Aspects
  • A niche range of equipment assets includes earthmoving equipment with ripper, hammer and roller attachments.
  • Pioneers in non-explosive excavation; a growing market sector that provides considerable cost and safety benefits.
  • Established in a market with significant barriers to entry, which includes asset acquisition, vendor relationships and earning respect in the market through a long track record of successful projects. 
  • Certified and competent operators are uniquely skilled in extracting maximum functionality and efficiency from the specialised excavation equipment. 
  • Repeat customer base in the mining and construction sectors.
  • Able to easily expand the asset base according to demand; facilitated by strong supplier relationships and the ability to quickly capitalise new equipment from revenue generated.
Opportunities
  • Organic Growth - The niche attachment technology has proven itself in the South African market in a short space of time and demand for the innovative products continues to grow.
  • Geographic Expansion - Establishing additional branches near substantial ore deposits in Southern Africa, would immediately enable expansion of potential market due to improved 'localisation'.
  • B-BBEE empowerment - An acquirer that can improve the group’s B-BBEE score through ownership would particularly benefit from improved preference in tenders to mining houses, in accordance with the South African Mining Charter.
Headquartered
  • Based in Johannesburg, Gauteng, South Africa, with a large stand and purpose-built facilities for machine and parts storage and maintenance operations. The property is owned outside of the business but is available to be included in the sale, at an approximate market value of R12m. The geographic footprint also comprises an operations branch in Limpopo with convenient access to nearby chrome and iron ore mining clients.
Current Markets
  • The group's services are used wherever hard rock requires excavation, as an alternative to explosives. They are becoming widely used in the construction and mining industries for their ability to avoid collateral damage during work processes while achieving the same result with less risk or time spent on site.