South Africa : TURNER MORRIS diversifies.
In its bid to diversify Turner Morris Midmacor, a company that iswell-known for producing, distributing, importing as well as exportingconstruction equipment, has taken over cleaning equipment firm AFM CleanTech (American Floor Machines).AFM Clean Tech is the major supplier of industrial cleaning
equipment in KwaZulu-Natal.
Managing director Alwyn Coetsee says this will be a 'welcome
addition' to the business structure and will 'form a separate
division of Turner Morris in the future.'
He said : 'Diversification is the best business model for
tough economic times and that is exactly what we have done with this
acquisition. Despite the enormous pressure we have experienced in the
construction industry, Turner Morris managed to show a strong growth in
2012. Declines in consumer confidence and decreased sales threaten all
businesses and we are no different. This acquisition will enable us to
spread our risk, and even better our successes of 2012.'
He added : 'One of our core objectives is to always make sure
we look at new opportunities and offer the best range to our clients
this is a continuation of that. AFM specialises in industrial cleaning
equipment and are a leader in KZN, he says. There are a number of rental
companies out there that use their products, which overlap nicely with
our existing businesses, but we re also planning to expand our business
into the cleaning industry. We have national sales and back-up support
in 12 Turner Morris branches throughout South Africa and we will roll
this out nationwide in all our branches so we expect some growth in that
sector. We were actually a customer of theirs, buying a lot of cleaning
equipment from them over the years for rental purposes and for resale.
They came up for sale and we decided to acquire it, obtaining, first
off, to get products at a cheaper rate, and also to expand our business.
It raises a lot of synergy but there is a big enough difference in that
kind of business to give us an extra leg to stand on.'
2013 Al Bawaba (Albawaba.com)
Provided by Syndigate.info an Albawaba.com company
COPYRIGHT 2013 Al Bawaba (Middle East) Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2013 Gale, Cengage Learning. All rights reserved.
equipment in KwaZulu-Natal.
Managing director Alwyn Coetsee says this will be a 'welcome
addition' to the business structure and will 'form a separate
division of Turner Morris in the future.'
He said : 'Diversification is the best business model for
tough economic times and that is exactly what we have done with this
acquisition. Despite the enormous pressure we have experienced in the
construction industry, Turner Morris managed to show a strong growth in
2012. Declines in consumer confidence and decreased sales threaten all
businesses and we are no different. This acquisition will enable us to
spread our risk, and even better our successes of 2012.'
He added : 'One of our core objectives is to always make sure
we look at new opportunities and offer the best range to our clients
this is a continuation of that. AFM specialises in industrial cleaning
equipment and are a leader in KZN, he says. There are a number of rental
companies out there that use their products, which overlap nicely with
our existing businesses, but we re also planning to expand our business
into the cleaning industry. We have national sales and back-up support
in 12 Turner Morris branches throughout South Africa and we will roll
this out nationwide in all our branches so we expect some growth in that
sector. We were actually a customer of theirs, buying a lot of cleaning
equipment from them over the years for rental purposes and for resale.
They came up for sale and we decided to acquire it, obtaining, first
off, to get products at a cheaper rate, and also to expand our business.
It raises a lot of synergy but there is a big enough difference in that
kind of business to give us an extra leg to stand on.'
2013 Al Bawaba (Albawaba.com)
Provided by Syndigate.info an Albawaba.com company
COPYRIGHT 2013 Al Bawaba (Middle East) Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2013 Gale, Cengage Learning. All rights reserved.
Replies