Engineering technology group IST has acquired the business of Sandton-based Delkor for R33 million cash.
IST says Delkor`s management team, including the CEO and the marketing director, will be involved in the future operations.
The acquisition is in line with a statement by IST earlier this month that it was actively pursuing acquisitions to strengthen and expand existing businesses. It said at the time that two prospective targets were in their final evaluation stages.
"Delkor fits our acquisition matrix," says IST CEO Harry Coetzee. "It has a well-established customer base, a portfolio of excellent products, a track record of profitable operation and good prospects.
"It will complement and extend the activities of IST`s industrial division, which operates in the same markets and with which it is to be merged."
He says the net assets acquired in terms of the deal amounted to R18 million at the effective date.
Had the acquisition been in place for the six months to August, it would have boosted IST`s headline earnings per share by 25.3%.
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