Nasdaq-listed Garmin wants to buy out its South African distributor, Garmin Distribution Africa (GDA), which will bolster growth of the portable navigation devices in the region.
GDA is the exclusive distributor of the devices in SA, where it has the lion's share of the market. Its only real competition is Tom Tom, as other brands have come and gone.
The deal, for an undisclosed amount, will see the company, which until 18 months ago was Avnic Holdings, renamed again, this time to Garmin Southern Africa. It will continue to operate from its offices and warehouse facility near Johannesburg, where it has about 70 staff members.
GDA CEO Richard Fearon says the company has worked hard to grow Garmin in SA. “Once we are fully integrated into the Garmin fold, we expect to grow the business even more in our rapidly growing region.”
Fearon says the buyout shows the local unit's importance to further developing Garmin's African business. GDA distributes Garmin's automotive, outdoor recreation, fitness and marine products in Southern Africa.
Garmin chairman and CEO Min Kao says: “We are happy to welcome our South African team into the Garmin family. GDA has been our South African distributor for nearly two decades, and this acquisition will only strengthen our ties to our retailers and customers in this region.”
The global company has issued a letter of intent, which is subject to the execution of a final agreement, as well as regulatory approvals. The acquisition should be wrapped up in June.
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