CT acquisition expands national footprint
Power, welding and construction-related equipment rental and sales company Renttech South Africa (Renttech SA) is expanding its presence in the national welding arena with the April acquisition of welding equipment supplier Western Cape Welding Supplies.
The acquisition forms part of the company’s strategic vision to become the country’s preferred supplier of rental equipment and specialised welding solutions, says SA Welding (SAW) – a division of Renttech SA – MD Aletta Theron.
“We recognised that we need to service our Cape Town customers. “We now have our main branch situated in Paarden Island and a satellite branch in Stikland, in the northern suburbs of Cape Town, which helps us easily supply our products to our clients in Cape Town,” she explains.
Theron adds that, owing to the acquisition, Renttech SA will have a greater footprint throughout the coastal regions from Cape Town to Richards Bay, as it will be able to supply its products to these regions along the coast more efficiently.
The acquisition has made Renttech SA the major supplier of global welding specialist Lincoln Electric products in Cape Town.
Theron explains that the Cape Town branch will operate as a current, separately branded entity, and Renttech SA will assist the company by supplying a broader range of products in the province. She notes that it is also more cost effective, as Renttech has a larger stockholding than Western Cape Welding Supplies.
Theron states that Renttech SA has 17 branches throughout South Africa and ample knowledge on stockholding and welding products, which will benefit Western Cape Welding Supplies in its operations.
Renttech will also supply its lifting and rigging products and personal protective equipment to the Western Cape branch and is embarking on rolling out its rental models to its Cape Town customers.
She adds that the acquisition has been seamless and Renttech’s information technology team, as well as its warehouse specialists and logistics team, were dispatched in April to the Western Cape to assist with integration and warehouse stocking.
“We have also had positive reactions from our Western Cape clients, as they can now buy our products over the counter, compared with ordering our products and waiting for deliveries, which has resulted in a much bigger service offering,” Theron believes.
Renttech is in the process of acquiring two more companies, which will broaden the com- pany’s footprint in South Africa.
Meanwhile, Renttech SA also bought welding company SAW. The acquisition was finalised in October 2012, which provides Renttech SA with the oppor- tunity to add expertise to its current offerings and expand its current footprint, as it has offices in Cape Town, Gauteng and the Vaal Triangle.
Renttech SA MD Gerrit van Zyl says the acquisition of SAW provides the company with complete synergy in its collective welding-product offerings.
“SAW brings vast experience in the direct sales and distribution of high-quality, specialised welding equipment. SAW’s employees also have many years of experience and knowledge in the welding industry, which adds impetus to Renttech’s own intellectual property and expertise in that arena,” he says.
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