Msebe Investment Holdings (Msebe), an investment company with interests in energy, health and retail announced that it has acquired a controlling stake in Power Process Systems (PPS), an electrical enclosure and distribution equipment manufacturer. All the Binding Agreements were concluded on 4 October 2021.
Msebe will take an active and operational role in the business with Nhlanhla Zondo (Director) and Msebe’s technical team working directly with the PPS management staff. Zondo is an accomplished electrical engineer with more than 25 years’ business and operational experience and has held various leadership roles in South Africa. He is both a registered professional engineer with ECSA and a director at Msebe.
“We have been driving towards this eventuality for a few years now and we are excited by the prospects of growing the company’s footprint and strengthening the business. The investment represents an important strategic opportunity; one which has not been fully realized due to limited transformation efforts – fortunately, that all changes now.” says Nhlanhla.
A significant feature of this acquisition is that there is no funding arrangement or equity scheme. This is a straightforward buy and sell transaction. Msebe Investment Holdings purchased the shares off its own balance sheet, and having made the financial commitment, is keen to participate in driving the business to grow this investment.
Power Process Systems will be 30 years old in 2023. During the company’s tenure it has supplied meter kiosks, pole boxes, distribution cabinets and stubbies to some of the largest and most complex reticulation projects in the country. Today, with facilities in the Western Cape and Gauteng, the business has long standing relationships with most municipalities, Eskom, developers, and contractors across South Africa, and have supplied major contracts in Namibia, Botswana, Uganda, Tanseco and some European customers.
“We are excited about the future” says Mike Du Toit of the present team. “We have connected with a business and people whom we are confident will share our commitment and passion to sustainably grow the business into the future. Msebe “has put its money where its mouth is” – the investment company now has as much a vested interest in the business as all our shareholders. And as Nhlanhla pointed out, this was not a rushed transaction it has been done right”.
The present and incumbent shareholders have engaged in many transactions and projects together to date and are comfortably familiar with each other and what each brings to the partnership.
Contact Ashley Ferguson, PPS, Phone 086 177-7769, ash@ppspower.co.za, www.ppspower.co.za
