Kwane Capital has acquired a 63,75% stake in the TFM Group in a cash transaction. With all approvals in place, the transaction is effective immediately, with Kwane intending to exercise its option to increase its stake to 72,66% within the next 12 months.
Mcebisi Mlonzi – founder, chairman and CEO of Kwane Capital – says, “We came across TFM when sourcing specialised vehicles for our earthmoving, plant and equipment leasing business, and were so impressed we just had to buy the business. The intention is to boost the turnover of the business to R2 billion within a year.”
TFM was established in 1966 as specialist truck customisation, maintenance and repair business, branching out into armoured vehicle production industry in the 1970s. “The concentration will be to increase the armoured vehicle division earning hard currency,” says Mlonzi.
TFM’s customer base in SA and abroad spans the commercial, municipal, automotive and defence sectors. Specialist truck bodies for the transport, construction, forestry, cargo body, waste and environmental transport industries, and ambulances, armoured vehicles, tippers, fuel tanks and trailers are manufactured and assembled in TFM’s Olifantsfontein, East London, and Durban factories, with aftermarket service and maintenance provided nationwide.
Wholly owned subsidiary Fabkomp manufactures components for the automotive and engineering industries in its King William’s Town factory. Logistical services are provided to Mercedes-Benz in East London and Toyota in Durban.
TFM Industries MD Johan van der Merwe says, “The TFM Group is ready and eager to notch up another 50 years of quality service to existing and new customers”.
The combination of TFM’s manufacturing ability with Kwane’s vehicle leasing activities is expected to create a competitive platform to deliver a full service offering of specialist vehicles and their maintenance to customers in all sectors of the economy.
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