Posts

AFGRI extends service offering in the Western Cape through acquisition of Agrico mechanisation business

Agrico (Pty) Ltd has announced its intention to divest its mechanisation division, including its John Deere dealerships and other import agencies. It has agreed to sell the bulk of the division to AFGRI Equipment (Pty) Ltd as a going concern, pending regulatory approval. It intends to sell the balance of the division to other existing mechanisation dealers. The acquisition includes Agrico’s John Deere dealerships in Belville, Caledon, Ceres, Malmesbury, Moorreesburg, Piketberg, Rawsonville and Vredendal.

The purchase will be made by the AFGRI Equipment (Pty) Ltd division of AFGRI, which is the preeminent agricultural, golf and turf equipment retailer in Africa and Western Australia. It offers the world’s leading equipment brands and backs these brands with a support network of 25 strategically placed branches.

The acquisition will allow AFGRI to better service farmers in the Western Cape region and beyond, says AFGRI CEO, Chris Venter. “We are pleased with this new addition to the AFGRI group of companies, and are confident that this business is a good fit with AFGRI. It will bolster our existing product range in this market segment.”

Venter went on to welcome Agrico employees and clients into the AFGRI family and indicated that AFGRI is looking forward to a long-term, mutually beneficial relationship. There will be no retrenchments as a result of the acquisition.  “The acquisition confirms AFGRI’s commitment and role in the development and success of the John Deere brand in South Africa and Sub-Saharan Africa,” he went on to say.

The acquisition of the various mechanisation agencies further extends AFGRI’s national footprint to ultimately benefit its clients.

With roots extending back to 1904, Agrico has 28 branches across South Africa. “Agrico will increase its focus on its water-related business and own-manufactured products. It will strengthen its presence in all areas currently served while expanding into sub-Saharan Africa. It retains over 800 of its 990 employees and will be further investing in its South African manufacturing- and retail operations,” said Walter Andrag, CEO of Agrico.

AFGRI Equipment buys TTS Agri

Leading agricultural services and processing company, AFGRI, has announced the acquisition of Truck & Tractor Specialists Agri (“TTS Agri”), a John Deere dealership based in Polokwane, Limpopo. The acquisition, which will be made by the group’s Equipment Division (“AFGRI Equipment”), is in line with the group’s strategy of being the preferred supplier of premium agricultural equipment, services and solutions in Africa.

“AFGRI Equipment is fast establishing itself as a reliable brand across Africa, and the acquisition of TTS Agri will increase the division’s area of operation right up to the border with Zimbabwe and Botswana, expanding existing operations. AFGRI Equipment will then operate throughout the north-eastern part of South Africa, as well as in Zimbabwe, Zambia and Ghana.” says AFGRI CEO, Chris Venter. AFGRI Equipment also operates the largest John Deere dealership in Western Australia.

Patrick Roux, the Managing Director of AFGRI Equipment, adds: “The Limpopo province is an irrigation area and the market is very stable.  Our entry into this market will give AFGRI Equipment additional diversification locally and it will connect our operations in South Africa with those in Zimbabwe.”

AFGRI, through its Harvest Time emerging farmer training programme, will also aim to become more active across the country. A large portion of emerging farmers reside in the northern part of the country.

“The Harvest Time programme has various components aimed at ensuring sustainability. We are not just about training – the programme includes funding options to buy tractors and agricultural inputs, but has a substantial mentorship component. It is the combination of these elements which ensures sustainability,” concludes Venter.