Electronics and electrical engineering group Reunert has acquired Australian company Heinemann Electric for R25 million.
Melbourne-based Heinemann Electric was founded in 1959 by Art Jorgensen a decade after he started a business of the same name in SA. The South African business, since renamed Circuit Breaker Industries (CBI), is now part of Reunert`s electrical engineering division.
The Australian company, which has an estimated turnover of R80 million, is to be incorporated into CBI.
Other companies in the division, which contributes about 27% of group profit, are telecommunications cable manufacturer ATC and power cable manufacturer African Cables.
"Over the past few years CBI has grown its export markets, while broadening its product base locally," says Reunert CEO Gerrit Pretorius. "Exports are 25% of turnover. Sales in Europe and the US have almost doubled the past year despite a stronger rand."
He says Reunert expects the Australian presence will further increase international sales.
Heinemann is a provider of electrical transformers and switchgear, electrical switchboards and a supplier of accessories to electrical contractors.
Reunert, whose shareholdings include 31.7% of CS Holdings and 40% of Siemens Telecommunications, achieved revenue of R6.1 billion in the year to September 2003. At the end of the March interim period, it had R689 million cash on the balance sheet.
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