Murray & Roberts sells construction products businesses
By Chris Sleight28 June 2013
South African contractor Murray & Roberts has sold the majority of its construction products businesses for a total of ZAR 1.33 billion (US$ 132 million). It is still looking for a buyer for Hall Longmore, which makes steel pipes
The businesses sold include, asphalt producer Much Asphalt, which was bought by private equity company Capitalworks, in partnership with members of the Much Asphalt management team. Ocon Brick, Technicrete and Rocla, which make bricks and concrete products were sold to a consortium comprising Capitalworks, another private equity company, RMB Ventures and some of the businesses’ managers.
Murray & Roberts’ CEO Henry Laas said, " There was limited strategic fit between these businesses and Murray & Roberts' future growth aspirations in engineering and construction. Divesting from the manufacturing businesses allows Murray & Roberts to reduce debt (excluding certain asset-based finance) on its South African balance sheet and invest in those market sectors and geographies that present the best long-term financial growth potential to shareholders."
These disposals follow the sale of its steel business in 2012 and rolling stock manufacturer Union Carriage & Wagon (UCW) earlier this year.
"The successful conclusion of these disposals will support the Group in working towards its vision to be the leading diversified engineering and construction Group in the global underground mining market and in the natural resources and infrastructure sectors in selected emerging markets by 2020,” concluded Mr Laas.