Original Equipment Supplier of brakes and clutches for off-road, mining, and industrial machinery

Our client is an engineering company and Original Equipment Supplier (OES) of brakes and clutches for off-road, mining, and industrial machinery. The Company has aligned itself with market leading major brands who each offer unique technical and progressive solutions. The wide range of products are imported from around the world from a variety of well-established Original Equipment Manufacturers.

Key Aspects

• OEM supplier of brakes and clutches for off-road, mining, and industrial machinery, aligning with market-leading brands offering technical solutions
• Healthy cash flows due to a diversified customer base, strong relationships with its stakeholders, and ongoing demand for critical components
• Established relationships with OEM’s and customers, where products are integral components of their equipment, leading to reliable ongoing revenue streams
• Significant stock holding to meet market demands
• Extensive product range of brake and clutch applications, designed to withstand demanding industrial operations
• Partner relations with key global suppliers are set to continue in place, continually ensuring a reliable supply chain and mutual growth

Opportunities

• Expansion of distribution network beyond South Africa possible for a strategic acquirer with the necessary resources to grow the business internationally
• Product range may be further diversified as suppliers expand offerings to capture other market segments
• Export business has great potential, particularly neighboring countries such as Zambia and Namibia

Headquartered

• The Company’s focus currently is on customers around South Africa, located across all provinces.

Current Markets

• The Company has several sources of recurring revenue, due to several applications whereby their products are designed specifically to fit customers’ machines and applications.
• Relationships of this nature with customers result in contractual agreements where the products play an integral role in customers' equipment, e.g. discs that are designed for various braking applications, utilised by yellow metal plant and industrial vehicles.