Kerman & Co acted for longstanding AIM-listed client Lonrho Plc on its acquisition of Trak-Auto Lda, the existing holder of the John Deere and Komatsu dealerships in Mozambique. John Deere is a leading supplier of agricultural equipment and Komatsu is one of the world’s largest manufacturers of construction, mining and utility equipment.
Trak-Auto Lda, a local Mozambique company, holds the excusive licences for both John Deere and Komatsu products in Mozambique and sold 104 John Deere units and 13 Komatsu units in 2009. It services customer’s requirements from its branches in Maputo, Pemba and Beira.
The acquisition price for 100 per cent of Trak-Auto Lda is US $2.0 million payable on completion, and a further US$1.0 million per year for the following three years subject to the business meeting agreed growth targets in relation to sales and profits.
David Lenigas, Lonrho’s executive chairman stated: “With the combination of Lonrho’s local expertise and John Deere and Komatsu’s excellent product ranges and professional approach to markets we expect to see strong growth for both brands in Mozambique. I feel sure that the commitment by all parties to provide the highest quality of support, service and training for the products delivered will build brand loyalty and market share.”
Michael Bennett, a partner at Kerman & Co LLP, dealt with this matter.
