Argent Industrial - Argent expands internationally
Argent, a steel-based beneficiation group with offshore investments, is advancing its strategy of expanding beyond South Africa, focusing on the UK and US markets. The group has announced another acquisition, this time purchasing UK-based Standmode for £6.9m (ZAR159.3m), paid in cash including £1.0m (ZAR23.1m) for the property owned by the entity. This transaction not only bolsters Argent’s foreign asset portfolio but also strengthens its more profitable manufacturing division. Compared to Argent’s history of acquisitions, this deal is particularly favourable, with a price-to-net asset value ratio of 2.3x, lower than the 2.7x average for the group’s previous three UK acquisitions. Based on the provided historical after-tax earnings of Standmode, the acquisition is likely to be earnings accretive. The net cash position after the transaction should remain robust.Argent Industrial is a holding company. Co.'s operations include steel trading, manufacture of home and office products, automotive products, fabrication and non-steel related products. The steel trading segment involves the trading of steel, stainless steel and aluminum. The home and office segment involves the manufacture of branded products. The automotive segment supplies automotive products. The fabricator segment supplies fabricated products to the construction, mining and industrial markets. The non-steel segment is involved in the supply of quarry stone and ready-mix concrete, railway retarders in North America, and the supply of rubber products.
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