Much Asphalt, South Africa’s leading supplier of hot mix asphalt to the construction industry, became an independent entity on 1 November 2013 following the acquisition of the business from Murray & Roberts by a consortium led by Capitalworks Private Equity.

The consortium, which includes Mineworkers Investment Company (MIC) and senior executives of Much Asphalt, will support the current management team in continuing its strategy of providing the construction industry with a comprehensive range of quality asphalt products.

With more than 25% of the investment being black-owned, this is a significant empowerment transaction.

“We are looking forward to the input of our new partners, Capitalworks and MIC, in our ongoing quest to strategically position static and mobile asphalt plants in the developing regions of South Africa and sub-Saharan Africa”, said Bennie Greyling, managing director of Much Asphalt.

He added that it would be “business as usual” for the company going forward and that existing strategies would be pursued for the foreseeable future.

“The new shareholders have invested on the basis that the company has a long and profitable track record and are therefore not seeking to make any management and/or strategic changes. They will provide strategic direction to ensure that our customers continue to benefit from Much’s significant geographic footprint, product innovation and capacity to reduce the cost of building and maintaining the country’s roads.”

Greyling said the development was a positive one for the company, since Much Asphalt was regarded as a non-core business by Murray & Roberts.

“The change in ownership will give us more flexibility in managing our own destiny. The focus will be exclusively on the asphalt business and in continuing to provide high quality products and exceptional service to our customers.”       
 

“Market feedback to date is that the transaction is well regarded by all stakeholders and that the involvement of large institutions with significant financial capacity is welcomed,” Greyling added.

Capitalworks partner Garth Willis said the focus of the investment would be to strengthen the company’s growth prospects. Capitalworks has invested across a number of sectors, with its core philosophy being to partner with experienced management teams that create long-term value for all stakeholders. “Capitalworks focuses on the business needs of each investment and customises each transaction for sustainable growth”, he noted.

Capitalworks is actively seeking further acquisitions to add to its private equity portfolio.

Mineworkers Investment Company (MIC) is a 100% black-owned investment company formed in 1995 to create a sustainable asset base for the benefit of mine, energy and construction workers and their dependents. “We welcome this investment as one that provides a seamless fit with our strategy of investing in long-term cash generative assets that contribute to the development and competitiveness of the South African economy,” commented chief executive officer Mary Bomela.

Established in 1965, Much Asphalt is southern Africa’s largest commercial manufacturer of a wide range of hot and cold asphalt products. The company’s 17 static asphalt mixing plants are complemented by three mobile plants to service remote projects. Much also has a share in Specialised Road Technology Laboratories (SRT) and a 55% stake in East Coast Asphalt.

Much Asphalt’s ISO 9000-certified products are supplied to national, provincial and local government, private companies as well as state owned companies such as SANRAL (South African National Roads Agency Limited) and ACSA (Airports Company South Africa), and the public at large.
      
A technical division provides specialist services, while Much Asphalt’s SANAS (South African National Accreditation System) accredited laboratory in Cape Town develops new products, performs proficiency testing and offers testing services to clients. Each plant has its own dedicated quality control laboratory.