Kutana Steel buys Saint Gobain Pipelines
Kutana Steel, a wholly owned subsidiary of investment company Kutana Group is acquiring Saint Gobain Pipelines from industrial giant, Compagnie de Saint Gobain. Terms of the deal, which was led by Kutana’s Chief Investment Officer, Anthony Barnard and Investment Principal Claire du Bourg, were not disclosed. Saint Gobain Pipelines produces iron castings for industrial parts and cookware. Its iron cookware products are supplied under the BestDuty and Chef Supreme brand names, both of which have developed strong brand value over many years.
In August 2016, Kutana paid R252 million or almost $19 million to acquire a 70% stake in Steeledale, a steel reinforcing and mesh business from publicly-listed Aveng as it looked to improve shareholder returns. At the time, Thoko Mokgosi Mwantembe, CEO of the Black Women-owned investment group, stated that the deal was a cornerstone of the group’s steel and construction business strategy. With Compagnie de Saint Gobain looking to divest itself of the pipeline business since it no longer fit with the company’s core activities, Verdant Capital identified Kutana as a potential buyer following the Steeldale acquisition and the group’s acquisition of E+PC Engineering and Projects.
Crest Capital acted as financial advisors to Kutana, while Ferreira and Associates provided legal advice. Verdant Capital acted as financial advisor to Saint Gobain, with Webber Wentzel providing legal advice. Source: Africa Capital Digest