AECI Limited has announced the signing of a Share Purchase Agreement for Much Asphalt (Pty) Limited (Much Asphalt) with Old Mutual Private Equity (OMPE) and Sphere Investments (Pty) Limited (Sphere).
Much Asphalt is South Africa’s leading independent manufacturer and supplier of bituminous products. The company manufactures and delivers premium-grade products to customers for use in infrastructure such as roads, airport runways, and private use, including hot and cold asphalt products, bituminous road binders, emulsions, primers, pre-coats and modified binders. The transaction will grant OMPE and Sphere access to a well-established leader with a strong market presence in the asphalt industry, positioned to capitalize on the positive growth trends and ongoing recovery in the road infrastructure sector.
OMPE, part of Old Mutual Alternative Investments, is one of the largest and most established private equity fund managers in South Africa. With a 24-year track record of investing in the country, OMPE plays a pivotal role in the country’s investment landscape, managing a diverse portfolio worth over R16 billion across various industries and sectors. Complementing this, Sphere Investments is a leading, Black-owned, high-performing investment holding company. Since 2003, Sphere has partnered with management teams and invested in a diverse portfolio of companies in the engineering, infrastructure maintenance, custom software, industrial and education sectors.
Holger Riemensperger, Group CEO of AECI Limited, commented, “Together, OMPE and Sphere provide a platform for financial strength, market access and long-term success for Much Asphalt. This transaction is another significant step in our strategic journey and we are pleased with the outcome.”
The sale of Much Asphalt is a key component in the divestment strategy for AECI announced in November 2023. AECI is committed to the successful execution of our strategy, and this transaction enables us to focus our efforts and resources on achieving our goal of doubling the profitability of the core business (Mining and Chemicals) by 2026, while securing a top 3 global market position in Mining by 2030.
“As we look ahead, we are confident in a smooth transition and wish to express our sincere appreciation to our employees, customers, suppliers and partners for their continued support,” Riemensperger states.
