Hudaco acquires Flosolve business to expand engineering consumables segment

Hudaco Industries Limited has signed an agreement to acquire the trading assets and liabilities of Flosolve Proprietary Limited, a company specializing in equipment for the handling of fuels, lubricants, and other fluids, particularly within the mining industry. The purchase consideration will be based on Flosolve's annual profit after tax for the three years following the effective date, with an initial payment of ZAR45m and a maximum consideration of ZAR125 million, funded from Hudaco's cash generation and existing facilities. Flosolve employs 53 full-time staff and operates primarily in Gauteng and Middelburg. Hudaco views the acquisition as a strategic fit within its engineering consumables segment, allowing for optimized customer base expansion. The transaction, though falling below the threshold requiring mandatory disclosure under JSE Limited Listing Requirements, is being voluntarily disclosed to inform shareholders.