South Africa: Afrimat has received approval to acquire all of Lafarge South Africa and its subsidiaries. The acquisition has been structured as a locked box transaction, effective 31 December 2022, and the purchase is valued at US$6m. Afrimat also agreed to repay its loan amounts owed equating to US$47.8m. Afrimat confirmed the acquisition of the LSA Group, part of the Holcim Group, on 10 April 2024.
CEO Andries van Heerden said "The time was perfect for Afrimat to return to its roots of quarrying and aggregates to support long-term diversified sustainability across the group." He added that CFO Pieter de Wit will serve as the full-time integration manager to ensure integration of the two entities.
Pieter de Wit said "This exciting deal forms part of the Afrimat group’s ongoing diversification strategy. It will increase Afrimat’s offering in the construction materials space, by expanding the group’s quarry and ready-mix operations nationally."
The deal will bring 800 Lafarge employees to Afrimat. The acquisition also includes Lafarge's fly ash operations and a grinding plant. Funded primarily in cash, Afrimat's move comes at a time when the construction materials sector is experiencing increased demand, driven partly by state initiatives and a ‘robust’ residential building market in coastal regions.
