LONDON—Fenner P.L.C. is reorganizing its conveyor belt distribution system in Africa, and will sell its Engineered Conveyor Solutions service operations and related assets in South Africa as a result of those efforts.
In a July 25 statement, the company said that its subsidiary, Fenner Conveyor Belting South Africa Pty. Ltd. had signed a long-term agreement with Bearing Man Group Pty. Ltd. for the distribution of its conveyor belting products in specified territories in Sub-Saharan Africa.
As part of this arrangement, BMG is also acquiring Fenner's ECS service operations and related assets in South Africa, and Fenner's South African conveyor belt plant will supply BMG with conveyor belting for South Africa and the other specified territories.
The transaction, Fenner said, is conditional on clearance from the South African competition authorities.
"This is an exciting opportunity for both Fenner and BMG and further strengthens the long term relationship that exists between the companies," Fenner CEO Mark Abrams said in a statement. "This transaction will enable both companies to harness their respective strengths and develop the sales opportunities in South Africa and the wider Sub-Saharan territories for conveyor belting using the well-respected, and well established branch and distributor network operated by BMG, one of the strongest operators in Africa."