FORTIFYING THE GROUP FOR GROWTH
Kwane Capital, led by Mcebisi Mlonzi, 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. This transaction will increase the overall black ownership in the group from 27.3% to approximately 87.66%.
“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.” said Mcebisi Mlonzi, founder, Chairman and Chief Executive Officer of Kwane Capital.
TFM was established in 1966 as specialist truck customisation, maintenance and repair business, branching out into armoured vehicle production industry in the 1970’s. “The concentration will be to increase the armoured vehicle division earning hard currency.” says Mcebisi.
Today, the TFM group of companies is highly respected in South Africa and abroad by its customers in the commercial, municipal, automotive and security industries. Specialist truck bodies for the transport, construction, forestry, cargo body, waste and environmental transport industries, and ambulances, armoured vehicles, tippers, water and diesel tankers and trailers are manufactured and assembled in TFM’s Olifantsfontein, East London, and Durban factories, with aftermarket service and maintenance provided nationwide.
TFM’s DefSec division was well known in the defence sector for its products such as the Casspir, Nyala, Scout and RG31, which are used by the United Nations and NATO as well as the South African authorities. This division was sold to Reunert in 1997. Since then TFM has focussed on the commercial security Industry delivering numerous vehicles such as the WP1800 crowd control vehicle.
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.
Managing Director of TFM Industries, Johan van der Merwe comments: “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 leading manufacturing and product support abilities in all sectors, will with Kwane, create a competitive platform to deliver a full service offering of specialist vehicles and their maintenance to customers in the policing, military and defence sectors.
Mcebisi Mlonzi commented, “We look forward to our next 50 years with TFM, developing a world-leading African industrial manufacturing player”.