JOHANNESBURG– South African fertiliser and mining explosives maker Omnia Holdings said on Thursday it had agreed to acquire an oil products and lubricants supplier as part of its strategy to expand its chemical business.
Omnia will acquire a 90 percent stake in South Africa’s unlisted Umongo Petroleum for 780 million rand ($58.3 million).
“It’s really an area we are not involved in currently which has good product volumes and has good growth,” Omnia CEO Rod Humphris told Reuters.
Umongo, which has agreements with various entities in the Chevron Group, is a distributor of additives, base oils and other related petroleum and lubricant products in South Africa and sub-Saharan Africa, Omnia said in a statement.
The remaining 10 percent will continue to be held by investment company, Autumn Storm, with the current CEO Boston Moonsamy remaining in his position for five years.
“Umongo is a market-leading, complementary asset to our existing Protea Chemicals business which will broaden our current product offering and strengthen our sub-Saharan Africa strategy,” Omnia financial director, Wayne Koonin said.
Humphris said Umongo, which reported earnings before interest, tax, depreciation and amortisation (EBITDA) of 101 million rand for the year ended Feb. 28, had shown good growth.