Southern Palace Group has announced it has signed an agreement to acquire 100% of Genrec Engineering, a steel fabrication and manufacturing business, from Murray & Roberts.
Lucas Tseki, Southern Palace CEO, comments: “This acquisition is a continuation of Southern Palace’s strategy to be a leading, black-owned, industrial operating company particularly in the infrastructure, mining services and value-added steel manufacturing industries.”
Southern Palace Group has been growing consistently and this move in the steel fabrication industry will further boost its capabilities and present long-term sustainable growth potential to the Group. In addition to the acquisition, the company is investing further capital to modernise the Genrec business and to ensure that it is sufficiently capitalised to take advantage of the Group’s new business strategy.
Henry Laas, Group Chief Executive, Murray & Roberts comments: “Genrec was the last remaining manufacturing business in the Group’s portfolio of businesses. We believe that the sale of Genrec supports the Group’s long-term strategy and that, it is in the best interests of Genrec, as the business will now have greater opportunity to unlock order book potential in the public sector.”
Due to the nature and size of the transaction between Southern Palace and Genrec, it is deemed a large merger by the Competitions Commission. The deal is expected to be concluded in the next three months, pending approval by the Competition Commission.
Southern Palace is a wholly black-owned and managed South African, diversified industrial operating company with interests in numerous well-established businesses. Southern Palace has an established track record of successful investment transactions in the Southern African market.
More information from:
Southern Palace Group