Following Grindrod’s recent interim results reflecting a 5% increase in revenue, a 23% improvement in headline earnings on the prior year and the spinoff of its Shipping Division, Grindrod’s Freight Services division is making strides in cementing its strategy of adding scale and refocusing on its core expertise to provide tailored solutions for customers.
Grindrod, recently announced the acquisition of the Novagroup (Nova) from Pescanova. Established in the sixties to deliver support services to the maritime industry, the business has grown to be leading providers of marine and aviation rescue and survival equipment, container storage, shipwright, depots, bespoke engineering and support services.
The services provided by Nova dovetails with Grindrod existing businesses, specifically the provision of marine and aviation rescue and survival equipment and Nova’s United Container Depot (UCD) business. These businesses complement Sturrock Grindrod Marine Tech (SGMT) and Grindrod Intermodal respectively.
Said Andrew Sturrock, CEO Sturrock Grindrod Maritime: “The intention is to strengthen our position in the niche marine technical market. This acquisition will enable us to leverage off the respective sales and servicing agreements of both SGM and Nova, with a view to enhance our already impressive range of services and to increase our comprehensive product offering to the marine and shore-based industries we serve.”
Over and above providing a more comprehensive product offering in the marine technical market, the integration of Nova’s businesses will introduce further complementary services to SGM’s customer base serviced by its 60 offices in 14 countries.
Newly appointed CEO Grindrod Intermodal, Mahmood Simjee said: “We are very pleased to be in a position to provide the solutions required by Shipping Lines from a wider footprint in southern Africa.”
Grindrod Intermodal currently have warehousing and depot facilities in Johannesburg, Durban, Cape Town, Port Elizabeth and Mozambique with a total area of 411 600 m² and a throughput of 350 000 TEUs per annum. The integration of UCD will provide further depot facilities in Cape Town, Johannesburg, Durban and Port Elizabeth totalling an area of 78 000m².
“We have advised that we are looking to “scale up” our businesses. It is important that these acquisitions support our existing core expertise and that they contribute to unlocking trade corridors for our valued customers”, said Andrew Waller, CEO Grindrod Limited. “This acquisition of a good footprint, agencies and people will do exactly that. We continue to look at further opportunities to enhance our service offering to customers”, continued Waller.