27/08/2024
It is with great pride and excitement that we announce the successful acquisition of Technique Manufacturing Corporation (TMC) from Pinetown, Kwa-Zulu Natal. After several months of due diligence, negotiations, and strategic planning, a final agreement has been reached, marking a significant milestone in CRH-Africa's growth journey. This acquisition not only strengthens our presence in the KwaZulu-Natal region but also aligns with our long-term vision of expanding our footprint within the South African automotive industry.
Integration
With the acquisition, TMC will be rebranded as CRH-Africa Automotive (Pty) Ltd, KZN. In the coming weeks, we will roll out a comprehensive rebranding campaign that will reflect the new identity and values of this facility under the CRH-Africa umbrella. The integration process is set to begin immediately, with a focus on harmonising the systems and processes between our new KZN plant and our existing operations in Gqeberha. We anticipate significant synergies that will enhance our production capabilities and enable us to serve our clients better.
Strategic Alignment
The acquisition of TMC is a strategic move that fits seamlessly into our growth objectives. TMC’s expertise in manufacturing a wide variety of stainless steel and mild steel pressed and assembled components is a perfect complement to CRH-Africa’s existing portfolio. This acquisition also supports our localisation efforts, particularly in collaborating with Toyota South Africa (TSAM) and the broader KZN automotive sector. By bolstering our regional presence, we are well-positioned to support and grow the local industry.
A Collaborative Process
The acquisition process was characterised by professionalism, collaboration, and a shared commitment to ensuring business continuity. We worked closely with the Business Rescue Practitioner (BRP) to manage the transition smoothly and to secure the future of the business as a going concern. A key mandate from TSAM, BRP, and CRH-Africa was to ensure the well-being of the TMC employees, who have shown remarkable resilience and openness throughout this period of uncertainty.
Our due diligence process was thorough, focusing on people, equipment, and processes. We understood the challenges and concerns faced by the TMC team and appreciated their support and transparency throughout this journey.
Looking Ahead
The finalisation of the sale agreement marks a new beginning for the TMC team, now part of the CRH-Africa family. This acquisition, supported by our shareholders and board, opens new opportunities for growth, innovation, and sustainability. We are excited to embark on this new chapter and look forward to integrating the TMC team into our operations, driving success.
Stay tuned for more updates as we commence the rebranding campaign and continue to build on this exciting new venture.
