As part of its continued efforts to diversify its portfolio from the struggling mining industry, JSE-listed Hudaco has acquired the trading assets and liabilities of Hydraulic Engineering Repair Services (HERS) for up to R100-million.
HERS manufactures and repairs hydraulic cylinders. One of its divisions is focused on the repair and refurbishment of drivetrain components, including axles, transmissions and torque converters for the mining, construction and manufacturing industries, besides others.
The business had synergies with existing Hudaco businesses, both in terms of products and customers.
The final consideration would be dependent on HERS’s average profits over a two year earn-out period and was expected to be between R33-million and R100-million.