VENTURES: Sheerline May Re-Inforce Wispeco
Recent Western Cape Business News
ALUMINIUM specialist Wispeco, which is owned by the Stellen-bosch-based industrial conglomerate Remgro, has increased its market footprint significantly with the acquisition of Ottery-based Sheerline.
Sheerline, which also produces a variety of aluminium products, was bought from the debt-laden AG Indus-tries for R50 million. AG Industries finds itself in helluva financial pinch so one would assume the austere chaps at Remgro have not overpaid for Sheerline – which is a well established business.
Both Wispeco and Sheerline have a significant presence in Cape Town. Wispeco – which specialises in doors and windows – operates a press plant in Parow Industria, a powder coating facility in Epping Industria and an anodising plant in Wetton.
Sheerline distributes sliding doors, shower doors and windows from its base in Ottery.
While Wispeco – which was valued at R350 million by Remgro in the year to end March 2009 – has largely been regarded as a niche business, the acquisition of Sheerline will add some bulk to operations.
Sheerline is a sizeable business that generates sales of around R200 million – turnover that significantly includes new business outside the traditional residential building market.
A more important consideration is that Sheerline will hope-fully bring profitable syner-gies to Wispeco, which – after a good growth run – saw profits more than halve to R30 million in the year to end March 2009.
Perhaps bringing Sheerline out of the insecure atmosphere of AG Industries into the financial muscular Remgro group will do wonders for staff morale…and also profitability.
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