RMB Corvest Consortium Invests In The South African Manufacturing Sector
RMB Corvest Consortium Invests In The South African Manufacturing Sector. RMB Corvest has partnered with Umoya Capital Partners and Calibre Capital to obtain a minority share in the business. M4A specialises in the manufacture of passive network infrastructure for use in the formation of fibre networks and bulk civil infrastructure. Items include small boundary boxes to large manholes to suit network distribution; various ducts which are eminently suitable for the telecommunications networks industry along with pre-cast and pre-fabricated municipal and civil engineering solutions.
M4A was founded in 1997 and has been part of the Civilworks Group since 2014. Civilworks, founded in 2006, is a supplier to the Civil and Municipal markets in sub Saharan Africa. The business’ manufacturing facility is based in Johannesburg, and has distribution facilities in both Durban and Cape Town, it currently employs approximately 200 staff. Supplying “right-fit architecture” for cost saving network design, along with the ability to deliver unique solutions to clients with specific combinations of material designs, places it in a unique position within the market. “This transaction further expands the BEE status of M4A, which in light of the South African infrastructure spend ensures the competitive edge for the business,” says Darryl Horney, partner: Umoya Capital.
The business has a robust, experienced management team, who constantly seek to enhance and fine-tune products and offerings. “We currently hold 8 patents on our original, unique designs,” says Garreth Crooks, managing director: M4A. “We continue to ensure our technical expertise is focussed on solving any challenges our clients face. Our strong manufacturing base coupled with new opportunities in the electrical sector, means our new private equity partners are invaluable. Both in terms of business strategy expertise, along with the long term possibility of further consolidation in our sector.”
The outlook for the business in the telecommunications sector is positive. There is an expectation for good expansion globally due to the improved build to cost ratio of networks. In addition, the local energy challenges that South Africa currently experiences means that suppliers will need equipment to mitigate current or heavier rolling blackouts. This may prove to be another area of growth for the business.
M4A’s end users were originally Fibre Network Owners (FNOs) and Mobile Network Operators (MNOs) locally and globally, including well known South African brands. However, M4A’s customer profile changed to include any intermediaries who were directed by these customers that had selected M4A as approved technical suppliers. “M4A’s commitment to quality is highlighted by ISO registration,” says Geoff Wilmot, executive: RMB Corvest. “It remains our intention to continue to leverage partnerships with leading international suppliers to fuel organic growth. We are confident that this partnership will add impetus and significant value both to the business and its long-term market strategy,” he concludes.
