IMCD South Africa signed agreement to acquire CPS Chemical Oil-Tech
IMCD South Africa has signed an agreement to acquire 100% of the shares of CPS Chemical Oil-Tech (Pty) Ltd, a distributor of raw materials to the petroleum, additive, grease manufacturing and other industry related segments.
“Joining forces with CPS Oil-Tech will enable IMCD South Africa to offer its customers an increased product offering, through the valued strategic principals that CPS Oil-Tech, already represents. Furthermore, the business unit will become stronger due to the increased expertise and technical knowledge of its staff supporting our continuous efforts and ambitions to further expand within the Sub-Saharan Africa region,” said Ryan Harrison, managing director, IMCD South Africa.
“We are very pleased to become part of IMCD and the company’s growth strategy. Our current management and business set up, will continue to support our valued business partners by introducing new offerings and services. We look forward to leveraging IMCD’s capabilities and global network and creating new business opportunities,” said Raj Singh, managing director, CPS Oil-Tech.
Established in 1993 and headquartered in Durban, South Africa, CPS Oil-Tech is an asset- light speciality chemical distributor mainly serving the lubricants and fuels markets. With eight employees, CPS Oil-Tech generated a revenue of approximately ZAR228 million (USD12.6 million) in the financial year that ended on February 28, 2022. The company represents leading global suppliers and serves a large group of customers with an extensive portfolio of products alongside commercial and technical support.
IMCD NV is a company based in the Netherlands that specializes in sales, marketing and distribution of specialty chemicals and food ingredients. IMCD South Africa
provides national market coverage as well as penetration into other African countries. Headquartered in Johannesburg, IMCD South Africa Ltd also has branches in Cape Town and Durban. Extensive warehousing facilities are in Johannesburg, Cape Town, Durban, Port Elizabeth and East London.
The closing of the transaction is subject to customary closing conditions and regulatory approval and is expected to take place in the second quarter of 2023.