Construction and engineering group Murray & Roberts (M&R) has successfully sold its former M&R Construction Products Africa businesses – Technicrete, Rocla and Oconbrick – to a consortium comprising private equity firm Capitalworks, RMB Ventures and senior executives in the businesses.

While the businesses remained successful, M&R said there was a limited fit between these businesses and the group’s strategic focus on engineering and construction, which provided an opportunity for the consortium to acquire the businesses.

“We are proud to welcome our new investors and pleased that they have recognised the potential for further success in each of these companies. The first three months of this financial year have shown excellent performance across the three businesses and we look forward to this continuing as we take them forward under new ownership,” the CEO of the three businesses, Albert Weber, said.

Meanwhile, RMB Ventures lead transactor Justin Babaya said the transaction positioned the three businesses to take advantage of the infrastructure growth opportunities that existed within South Africa, while proving RMB’s commitment to the development of South African infrastructure.

Weber added that the businesses would remain focused on their strategic objectives, as well as on delivering the quality, innovation and service excellence they were known for.

“The demand for our products continues to grow and we have an experienced team of staff to deliver on these needs. We are confident that this will bring further success for the group companies and excellent returns for our investors,” he noted.

Further, as the companies had established themselves in the market, each would maintain its current brand and identity.

This disposal formed part of an ongoing strategic repositioning of M&R, which was being led by CEO Henry Laas. The proceeds from the sales would be used to reduce debt and invest in market sectors and geographies that presented growth potential for the group’s engineering and construction businesses.

M&R had already disposed of steel producer Cisco, which it sold to DHT Africa, a unit of a Turkish company, in 2012, and Union Carriage & Wagon, which was sold to black economic-empowered Commuter Transport Engineering in early 2013.

Further, Much Asphalt was, earlier this month, sold to a consortium comprising private equity firm Capitalworks and certain Much Asphalt senior management and executives.

Negotiations with potential buyers for the sale of the steel-piping subsidiary Hall Longmore were ongoing.