Ludowici Limited (LDW) is pleased to announce that it has agreed to acquire Meshcape Industries located in South Africa. Meshcape is a major supplier to the mining sector, aggregate and industrial markets, manufacturing, importing and distributing predominantly screen consumables – including polyurethane, woven wire mesh, woven screens, wire conveyor belts, wedge wire and perforated material solutions.
Ludowici Managing Director, Patrick Largier, said the acquisition would strengthen the Company’s position in Africa, providing a platform of scale from which to grow in one of the world’s fastest growing resource regions. Commenting on the strategic, cultural and operational alignment of the two businesses, Mr Largier
said: “We are excited about the opportunities that the acquisition provides for Ludowici and Meshcape. The broader African continent is experiencing rapid growth with a number of new resource projects being established. This acquisition will provide Ludowici with the scale to leverage this rapid resource project growth and support its major customers as they expand in Africa, with a locally sourced offering of both consumable and capital product.”
The proposed acquisition is consistent with Ludowici’s strategy to grow its consumables business, Meshcape provides Ludowici with immediate scale in Africa and a platform to grow rapidly in one of the world’s fastest growing resource regions ; develop a geographically balanced portfolio of capital and consumables businesses; and acquire businesses that are core or complementary to Ludowici – there will be significant potential to expand the African operations given Meshcape’s complementary nature to Ludowici’s current operations. The acquisition of Meshcape is consistent with Ludowici’s strategy to become a leading specialist supplier to the global mineral processing industry. Under the acquisition, Ludowici will acquire Meshcape’s manufacturing assets based in Johannesburg, its established branch and distribution network throughout the major centres of South Africa, and a 50% interest in a South African joint venture with French company, Euroslot (wedge wire manufacturer). Ludowici has agreed to pay ZAR85.2 million (A$11.7 million*) for this acquisition. Approximately 22% of the purchase price will be deferred for 12 months, resulting in an interim debt level increase of ZAR$66 million (A$9.1 million*) for Ludowici.
Ludowici Limited (LDW) was established in 1858. Its activities today revolve around the global mining industry: designing, manufacturing and marketing mineral processing equipment. This includes vibrating screens, reflux classifiers, coal centrifuges, an extensive range of wear resistant products and a variety of other products and services. The Company’s diverse range of products and services is testimony to its reputation for innovation. In over one hundred and fifty years, Ludowici has evolved and adapted to changes in industry, technology and society. Head office is in Brisbane, Australia with international offices established in Latin America, China, India, South Africa and the United States.