The well-known South African Broad Based Black Economic Empowerment (BBBEE) electrical engineering group ACTOM (Pty) Ltd (ACTOM) via their Power Conversion Division has acquired leading air-conditioning engineers and contractors specialist company Luwa (SA) (Pty) Ltd (Luwa SA) from its South African shareholders.
The acquisition was concluded in January and is effective from the 1st of February 2011. Luwa SA was established in South Africa in 1971, this year marking their 40th anniversary. Luwa is one of the leading and oldest players in the industrial ventilation and air-conditioning solutions environment and offers design, manufacture and installation capabilities. Luwa SA is based in Pinetown and Brackenfell.
Paul Cuthbert, Managing Director of ACTOM’s Power Conversion Division, said the acquisition complements the group’s activities in the air movement, air pollution and dust control markets and further reinforces the group’s commitment to investing in quality South African engineering companies aligned with its market focus.
“ACTOM is well established as a major supplier of gas and dust emission control systems as well as fans for industrial mining and power applications. The acquisition of Luwa SA extends our involvement in the air movement and controls industry into new industries such as health care and pharmaceuticals via Luwa’s Clean Room Technology,” he stated.
Luwa will operate as a stand-alone business within ACTOM’s Power Conversion Division. “We view the company as a successful and well-run operation and have no intention of incorporating it into another business unit,” Cuthbert emphasised.
Frank Van Dongen, Luwa SA’s Managing Director, commented: “From our point of view an important benefit of the deal is that, by becoming part of one of the most forward-looking BBBEE groups in the country, we gain meaningful status, which opens up new business opportunities for us.
“Another major benefit for our company is that the financial muscle of ACTOM with its strong balance sheet and successful track record as a locally-owned group promises a solid capital base from which to more easily expand our business as requirements demand.”
He added: “We continue to have access to Luwa’s international technology which is a key player in the global textile air conditioning industry and are able to offer solutions to industry generally based on 40 years of local experience.”