Jasco buys out Cross Fire for R52.3 million

JASCO Enterprises, a listed industrial group, has acquired fire solutions firm Cross Fire Management for R52.3 million.

Jasco chief executive Pete da Silva said yesterday the acquisition would help the business move the company towards becoming a higher-margin professional service and consulting business.

Jasco, a hi-tech security firm, will acquire 65.4 percent of the total issued share capital in Cross Fire, and the remaining shares, held by the current management team, will remain unchanged.

Solid growth Jasco noted the deal was still subject to regulatory approval.

The purchase price will be settled with a R20m initial payment and two additional maximum payments of just over R16m over the next year, based on financial performance.

Cross Fire’s operations cover Johannesburg, Cape Town, Durban and Accra (Ghana). The company has a solid track record of doubledigit revenue growth since 2013, with consistent operating margins above 9 percent.

Da Silva said: “As we have restructured the group, reduced gearing to within our internal range of less than 50 percent and are improving operating performance, we are executing our strategic plan of measured acquisitions that either bulk up existing business units or fill gaps in our portfolio to supplement organic growth.

“This also meets our goal of continuing to align our portfolio of businesses and related products and service offerings to serve our blue-chip customer base in niche markets.”

Da Silva added that further benefits from the acquisition included the unlocking of synergies brought by having new, in-house fire system design and consulting capabilities. He said the acquisition provided access to an experienced and capable fire detection management team and the opportunity to cross-sell the rest of Jasco’s existing extensive service and product portfolio to Cross Fire.