JSE-listed Insimbi Industrial Holdings will see ISB acquire Treppo, which is involved in the sourcing, trading and buying of recycled metals – mainly ferrous metals or steel – in the greater Gauteng area.
Through this transaction, Insimbi will expand its ferrous business and its client base, enhance its access to raw materials for the purposes of beneficiation and gain access to an experienced management team and an international trading network.
Further, Insimbi aims to exploit the synergies that exist between the two groups which may include cost savings, improved margins, an expanded global and regional footprint and, most importantly, further diversification of Insimbi into a larger industrial conglomerate.
Treppo has a 13-year record in its niche section of the market and has experienced considerable growth during the recent past.
Insimbi will acquire Treppo for an initial amount of R109-million.
A further amount, limited to R8.5-million, may also become payable based on the achievement of certain profit targets set over the initial 36-month period post the acquisition.