Hudaco Industries Announces The Acquisition Of Plasti-Weld
Hudaco Industries Announces The Acquisition Of Plasti-Weld. Hudaco has announced that it has signed an agreement with Plasti-Weld to acquire its trading assets and liabilities with effect from 1 December 2023.
The purchase consideration will be based on the annual profit after tax of the Plasti-Weld Business for the three preceding financial years and the first year after the efective date. The maximum consideration is R56 million, which will be funded from cash generation and existing facilities of Hudaco.
The Plasti-Weld Business is an importer and stockist of plastic welding equipment, hot-airtools, specialised test and inspection equipment and thermo cutters. It also manufactures plastic welding rod and employs 15 staff, all based in Gauteng.
Hudaco specialises in the importation and distribution of selected high-quality branded automotive, industrial and electronic consumable products, mainly in the Southern African region. One of Hudaco’s key strategies is to acquire new businesses in similar fields of activity when the opportunity arises.
The purchase of the Plasti-Weld Business is consistent with Hudaco’s acquisition strategy and is an ideal fit for the engineering consumables segment of Hudaco, as a bolt-on to its existing thermoplastic pipes and fittings business, Astore Keymak, which also sells plastic welding equipment. They will work together in exploiting synergies, optimising their route to market and expanding the combined customer base. Hudaco will be able to utilise its experience and expertise in value-added distribution to enhance the position of the Plasti-Weld Business, resulting in long term benefits to shareholders.
