The southern African construction industry has received a boost with Imperial Logistics’ acquisition of a 55 percent interest in Rustgold Transport.
Rustgold, which is based in Rustenburg, specialises in distributing products like clinker, magnetite, raw materials and bricks throughout the north-western parts of South Africa as well as across the border to Botswana and Namibia. The acquisition will allow Imperial to transport and distribute these products and offer supply-chain solutions to blue-chip customers.
“We want to increase our market share and through this agreement Imperial Logistics will strengthen its presence in countries such as Botswana and Namibia, where Rustgold already plays a significant role,” said Nico van der Westhuizen, CEO of Imperial Logistics’ specialised freight division. “We are exploring new business opportunities that will produce immediate benefits to both companies.”
Rustgold’s fleet incorporates truck tractors, tri-axle aluminium flat-deck trailers, flat-deck interlinked trailers, side tippers and 15 Moffett Mounty forklifts. Imperial, meanwhile, brings experience in warehousing, in and outbound distribution solutions and consulting services to the table.
“This deal represents significant value for Rustgold Transport’s shareholders, improves the strategic balance of our business and aligns us with a leading global and diversified company, with superb tier-one assets and a track record of excellence,” said Attie Pienaar, Rustgold Transport Managing Director.
Rustgold can now enjoy benefits like bulk-fuel procurement and vehicle-parts purchases. Imperial’s strong commercial focus will also give Rustgold a more vital presence in the market.
“Together, we will make both businesses stronger to the advantage of shareholders and employees alike,” Pienaar concluded.