Beijer Ref cleared for Tecsa buy-out
SWEDEN/SOUTH AFRICA: Refrigeration wholesaler Beijer Ref’s proposed acquisition of Tecsa (Pty) has been cleared by South African authorities.
Beijer Ref announced its binding agreement to acquire Tecsa, owned by Westbrooke Investment, in October. CompCom SA, the South African competition authority, has now confirmed that the acquisition will not affect the competitive situation in the South African refrigeration market. However, the decision specifies that two of the 25 Tecsa branches in Polokwane and Rustenburg in South Africa must be sold.
Competition authorities in Botswana and Namibia are still to decide but their decisions, it is said, will only have a marginal impact on the deal, as more than 95% of Tecsa’s operations are in the South African market. Tessa has one branch in each of those two countries.
Pleased to have received clearance, Beijer Ref CEO Per Bertland commented: “There is great market potential in southern Africa, and expanding our presence in South Africa with another superior company is in line with our strategy.”
Tecsa (Pty) Ltd trades as TecsaReco with a wide range of products and brands within commercial and domestic refrigeration, air conditioning and spare parts for domestic appliances.
Purchase price is expected to be between SEK255m and SEK300m (€26.6m to €31.3m). In total, TecsaReco has more than 300 employees and gross sales in 2016 amounted to approximately SEK435m (€45.4m).
Beijer Ref says Tecsa will continue to be operated as a standalone business in its current form. It will supplement Beijer Ref’s existing subsidiary wholesalers in South Africa, Eurocool and Metraclark.
Beijer Ref buys South African wholesaler – 16 October 2017
SOUTH AFRICA: Swedish refrigeration wholesaling group Beijer Ref AB is set to acquire the Johannesburg-based wholesaler Tecsa (Pty) Ltd. Read more…