According to Engineering News, JSE-listed construction company Afrimat has acquired constructionproducts provider WG Wearne’s quarry, Wearne Aggregates, located in Bethlehem, in the Free State, through its subsidiary Rodag Holdings, as well as Wearne Ready Mix Concrete, for R30-million. The Wearne Bethlehem plant and equipment, which comprised the plant and quarry operating equipment, were also included in the transaction, which was finalised on Wednesday.
CEO Andries van Heerden said: “The asset fits well into Afrimat’s model of being a strong player in the rural geographic markets. [The quarry produces] a very high quality aggregate and fits well into our management structures,” he added. Since 2008, Afrimat’s headline earnings a share have grown by 26% a year and, since the company’s listing in 2006, Afrimat had seen a compound average growth rate of 11.4%.
In its latest financial results for the year ended February 29, the group improved its operating margin to 16.3% from 14% the year before, while also improving its cash generation from operations to R320.3-million, from R261.6-million the year before.
