Beijer Ref acquires refrigeration wholesaler in South Africa
16 October 2017
Source: Beijer Ref
Beijer Ref AB has entered into an agreement to acquire the business of Tecsa (Pty) Ltd and its assets. The acquisition broadens the base in Southern Africa.
Tecsa Pty Ltd, controlled by Westbrooke Investments and trading as TecsaReco, is a South African wholesaler that offers a wide range of products and brands within commercial and domestic refrigeration, air conditioning and spare parts for domestic appliances. Beijer Ref acquires the company for a purchase price amounting to between SEK 255 and 300 million. The variable portion of the purchase price is dependent on TecsaReco’s performance in the current financial year ending 28 February 2018.
Tecsa was originally founded in 1965 as a wholesaler of parts and accessories for household appliances. In 2013, Tecsa acquired Reco, a refrigeration and air conditioning wholesaler that started its operations in 1947.
The company’s headquarters are located in Johannesburg and its products are distributed through a number of branches, of which one is located in Namibia and one in Botswana. In total, TecsaReco has more than 300 employees and gross sales in 2016 amounted to approximately SEK 435 million. The company has a good track record and is profitable. The business will continue to be operated as a standalone business in its current form.
Beijer Ref is previously present in South Africa through the wholly owned refrigeration wholesalers Eurocool and Metraclark.
”The acquisition is positive for several reasons,” said Per Bertland, CEO of Beijer Ref. ”Our product range is strengthened with complementary segments and brands. We also access new and well-established sales channels. Above all, Beijer Ref acquires a stronger footprint in a growing market with a population that is gradually increasing its income and purchasing ability. The opportunities to reach out with our own manufactured and more environmentally friendly products also increase significantly.”
The parties have reached a binding agreement as of today and the takeover is scheduled for 1 March 2018. The acquisition is expected to generate positive effects on both sales and results in the long term. The purchase is subject to approval by the competition authorities in South Africa, Namibia and Botswana.