GB Group has acquired Equipment Spare Parts (Africa) ("ESP"), a leading distributor of spare parts for approximately $10 million in cash.
ESP is the leading South African supplier of replacement spare parts for industrial machines, with a wide product range including undercarriage and miscellaneous parts.
ESP is comprised of three divisions, namely the AMT Division, the ESP Division (includes TSP) and the GET Warehouse Division and operates through 13 branches covering the entire South African market. ESP has sales in excess of $30 million and employs over 250 people. GB Group, through the acquisition of the ESP, intends to build a competitive distribution platform for the promotion of its products in the South African market and adjacent territories.
ESP's management have retained a minority shareholding in the company and have maintained their positions and responsibilities held prior to the transaction.
With the successful completion of its sixth acquisition, in 2007 GB Group aims to generate consolidated sales of approximately $300 million.