Gilbarco Veeder-Root has signed a definitive purchase agreement with Automated Fuel Systems Group (Proprietary) Limited (AFS Group), based in Johannesburg, South Africa. The purchase agreement, which has been approved by the South African competition commission, is subject to customary closing conditions which are expected to be fulfilled by the middle of May 2013.
With more than 240 associates, AFS is a leading fuel management technology and services company providing wet stock management, automated refueling and maintenance services to retail and commercial customers, including mines and government agencies. AFS has been a long time distributor of Gilbarco Veeder-Root products.
This acquisition provides an opportunity for both AFS and Gilbarco Veeder-Root to strengthen the product & services offered in the Southern African market.
“We are extremely excited about AFS joining Gilbarco Veeder-Root. We are very confident in the future growth outlook for the Southern African region and this acquisition provides us with an outstanding opportunity to meet the needs of our customers.” said Stephen Moule, Gilbarco Veeder-Root EMEA President. “AFS has a well-established position in the South African market and will strengthen our product & solution offering in the retail forecourt market as well as expanding into new segments like mining and commercial fueling.”
“Combining our expertise and resources is a logical fit for both companies” said Tony Warrener, Group CEO of AFS. “Gilbarco Veeder-Root is leading globally in the fuel related services and technologies segment. This agreement will allow AFS to enhance our offerings to customers and will facilitate our growth strategy across southern Africa.”
AFS will retain its solid South African empowerment credentials through the continued shareholding of Calulo Petrochemicals. Mr. Mkhuseli Faku, Chairman of the Calulo Group and AFS, commented,
"Gilbarco’s investment not only empowers AFS to service the burgeoning regional market but more importantly demonstrates their commitment to working with strategic local partners, whilst respecting the values of broad-based economic empowerment."
AFS will continue to operate from its existing facilities in Johannesburg and throughout South Africa. The current management team, led by CEO Tony Warrener, will continue to lead the company post closure and will retain responsibility for developing the business to meet the needs of its customers and the broader market.
