MBOMBELA – In one of the biggest acquisition deals ever in the Lowveld, the Hi-Tech Security franchise, including Hi-Tech Nelspruit and Hi-Tech White River, was sold to CSG Holdings last week. All three acquisitions were effective from November 1 and the initial amount of R79,3 million was settled in cash.
The rest of the amount could be increased by a maximum of R53,2 million based on specific future financial performance criteria which will be settled by a combination of cash and shares.
Good news for Lowvelders and Hi-Tech clients is that Mr Johnny Kerswill (managing director: Hi-Tech Nelspruit) will now be at the helm of the Hi-Tech Lowveld and will run the operation for at least the next three years. Kerswill and his dedicated team have had a tremendous impact on fighting crime in the Lowveld.
Kerswill yesterday said, “I am looking forward to the challenge of managing the group in the Lowveld. With the support of a group as big as CSG we can take our business to a totally new level by also applying and acquiring the latest technology.”
Mr Rassie Schoeman, the founder of Hi-Tech Security in Barberton in 1990, said he was grateful to the Lowveld for their support over many years. “To each and every customer – thank you for your ongoing support. To our suppliers and especially to every franchise owner – you are the people that ultimately made Hi-Tech the success it is today. I believe the acquisition is a positive move and I have faith in CSG taking Hi-Tech to the next level. This national development will, without a doubt, be advantageous to the client.”
Mr Pieter Dry, chief executive officer (CEO) of CSG Holdings, said, “CSG now became a major player in security in Mpumalanga and these acquisitions will provide a platform for future purchases of security companies in the Lowveld. These acquisitions are a further step forward in building a fully integrated facilities management model and will increase the operating margins of CSG.”
Chief operating officer (COO), Mr Kobus Nieuwoudt, told Lowvelder that they had identified Hi-Tech as a leading brand in the Lowveld and started negotiations with the group a few months ago. “The strong leadership in the company and the company’s performance played a major role in our decision to buy it.
“CSG has a strong entrepreneurial culture and will allow the team to continue with what they do best without too much interference.” Nieuwoudt said their impact would be visible when they look at areas of growth and technology investment. “We want to build the Hi-Tech brand to an even bigger and better one.”
Hi-Tech Nelspruit recently won the best security company as well as the service excellence award (third time in a row) at the Best of Mbombela awards ceremony.
More about CSG
CSG’s facilities management division contributes approximately 30 per cent of the group’s overall earnings. Their subsidiary, Ukweza, provides contract catering, cleaning and hygiene services to numerous companies, including Mediclinic, Barloworld and Life Healthcare, while Global Industrial Projects provide plant and industrial cleaning to large blue-chip mining houses and manufacturing plants. Significant Site Services (SSS) provides remote site services with construction villages. Since the merger with M&S Holdings Limited in 2013, CSG’s revenue has leapt from R737,9 million to R1,27 billion in 2015. In order to extend its national footprint as a one-stop service for blue-chip clients, acquisitions and mergers of similar and complementary companies are a priority in the next few years. Security services, pest control, facilities management, HR and IR services are acquisitions to generate a platform for future growth.”
