Kaap Agri Limited and Partridge Building Supplies (Pty) Ltd announced on Friday, 28 September 2018, that they have entered into an agreement under which Kaap Agri will take up a share of 60% in Partridge Building Supplies. The company trades as Underberg Forge in Southern KwaZulu-Natal (KZN) and currently operates 6 branches servicing customers in both the farming and building materials sectors. Kaap Agri will have the right to acquire the remaining 40% interest in Underberg Forge at a later date.
“The investment is in line with our strategic growth objective of doing business in more places, with more customers and more products. It further ties in with our strategic plan of growing our agricultural and retail outlet footprint on the one hand and growing our share of the building materials market on the other,” said Sean Walsh, CEO of Kaap Agri.
“We believe the Underberg Forge team shares the same goals and is a good cultural fit. We are excited with the potential to grow Underberg Forge and to expand our stakeholder base into new territories,” said Walsh.
With its foundation in the agricultural sector, Kaap Agri has a strong presence in the Western and Northern Cape provinces. The company has mainly retail characteristics, augmented by a dedicated retail fuel strategy. The Group’s core businesses are Agrimark, Pakmark, Wesgraan and The Fuel Company.
Underberg Forge was established in 1965. Divisions include Forge Agri, which supplies a wide range of agricultural products and services and has a special focus on pasture-based dairy farming and Forge Build, the building material and hardware business. The business is supported by Forge Trans, an in-house transport and logistics division.
Underberg Forge will continue to operate branches under the Forge brand and its headquarters will remain in Underberg, KwaZulu-Natal. The company has a strong management team who will continue the execution of its vision and growth strategy under the leadership of Ian Robertson who will continue as Managing Director of Partridge Building Supplies. Richard Jardine and Patrick Reid will retain their positions as executive directors of the business which will become a subsidiary of Kaap Agri.
“We see an extensive overlap in synergy and culture between Kaap Agri and Forge. We both understand the value of agility and putting the customer first. The partnership will allow each business to leverage the combined expertise within the group to grow an expanded customer offering across product, service and region,” said Ian Robertson.
Note on Forward Looking Statements
This release contains certain forward-looking statements with respect to Kaap Agri’s financial position, performance and operations. These statements and forecasts involve risk and uncertainty as they may relate to events and depend on circumstances that occur in the future and as such are not guarantees or predictions of future performance. There are various factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements and readers are advised not to place undue reliance on such statements.