Johannesburg - Afrimat says it will buy Cape Lime for R276 million to augment its industrial minerals offering, it told shareholders on Monday.
The listed black empowered open pit mining company explains Cape Lime dates back to 1946 and is active in the fields of mining and processing dolomitic and calcitic limestone. It has two mines in the Western Cape and a mining right for a third mine it has not yet started operating, says Afrimat.
Cape Lime supplies a range of products, mostly to manufacturing industries producing chemicals, filler, glass, paint and food products. In addition, its products are used for water purification, soil treatment, effluent treatment, building and construction.
Afrimat, which listed in 2006, says the deal will open up new revenue streams for both companies as they have “different and complementary strengths”.
In the year to February, Afrimat improved revenue 5.1 percent to almost R2 billion, while headline earnings increased 24.4 percent, translating into headline earnings per share of 135.6 c.
Afrimat has mining operations scattered around SA as well as in Mozambique. The deal is subject to customary conditions.
Cape Lime delivered net profit of R28 million in the same period.
IOL