Afrimat South Africa to buy Cape lime at US $21.01m

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Johannesburg Stock Exchanges (JSE) listed Afrimat South Africa is set to buy Cape lime, an associated products producer from Dormell Group at the price of US $21.01m in cash and shares.
Afrimat South Africa which is open pit mining company said on Monday it had agreed to buy 100% of the issued share capital of Cape Lime.

According to the CEO of Afrimat, Andries van Heerden, the company has had many acquisitions but this one comes in as the largest one to date. He indicated that the quality of the assets acquired coupled with his company’s strength will ensure that the investment is revived quickly.

Although white lime producers are limited in SA, they are abundant in Europe, according to an industry source

Over the years Afrimat, has continued to diversify its business away from its traditional aggregate business through acquisitions that ensure a good revenue stream and good margins across the business.

Van Heerden noted that the Cape Lime acquisition would be an extension to its diversification strategy with the aim of leveraging on their core business in new markets while at the same time offering new products to existing markets.

Cape lime acquisition would go through the diligence process while at the same time get approval from the competition authorities and the Department of Mineral Resources in South Africa.