Hudaco Buys Partquip For $51.2m

September 5, 2014 Mzwandile Jacks Investing, Investors, M & A

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VENTURES AFRICA – JSE-listed firm specialising in the distribution of industrial and electronic products, Hudaco Industries (Hudaco), on Friday said it had acquired 100 percent of Partquip, the automotive parts distributor in southern Africa, for R550 million ($51.2mn) in cash.
Hudaco said it bought Partquip because the company is an ideal fit for Hudaco, whose main business is in the distribution of branded products, an area of core competency for Hudaco.
“Partquip will complement Hudaco’s existing automotive after-market businesses, which distribute clutches, seals and automotive bearings,” Hudaco said.
Hudaco is a South African group of
companies specialising in the importation and distribution of selected high quality branded and industrial products in the southern African region.
Partquip on the other side is involved in the distribution in Southern Africa of automotive components sold under the established brands of Partquip, A-Line, Brake Part and Ironman 4×4.
In terms of the deal, Carl Rogers, the current financial director, will be appointed MD of Partquip. The deal is on condition of the approval by the competition authorities in South Africa and that a satisfactory due diligence of Partquip is completed.