Aveng sells valve and pump manufacturing subsidiary to reduce debt
Infrastructure and resources group Aveng will sell Aveng Dynamic Fluid Control (DFC) to 100% black-owned investment company Copaflo for R165-million.
The sale will include the DFC operations in South Africa, Finland, the US, Brazil and Australia.
The transaction is expected to be finalised by October 31, subject to all contractual requirements being satisfied.
The purchase consideration will be settled through R154-million in cash and an R11-million subordinated loan advanced by Aveng to Copaflo.
The proceeds of the transaction will assist in the creation of a more appropriate capital structure and will be applied mainly to reduce debt and, to a lesser extent, for working capital requirements, Aveng says.
DFC was established in 1958 as a South Africa-based international manufacturer and supplier of valves and pumps. Its global market presence extends to the US, Australia, Finland and Brazil, with DFC supplying mainly into the water, effluent and mineral processing industries.
Copaflo invests in engineering and manufacturing businesses and is part of the Fabchem Group. It is funded by the Industrial Development Corporation.
“We are confident that Copaflo is the right partner to unlock DFC’s full potential and further enable its growth. Additionally, the transaction will ensure a sustainable future for employees, customers and suppliers of DFC,” says Aveng CE Sean Flanagan.
He adds that the sale of DFC will be a meaningful contribution toward the transformation of the South African manufacturing sector.
Further, he states that, “this transaction is an important milestone in terms of executing our strategy and achieving the Aveng of the future. It takes us one step further to our ambition of being an international infrastructure and resources group with a footprint in developing and fast-growing regions.”
Comments
Research Reports
Projects
Latest News
Showroom
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
