CPA, which is 50.13 percent owned by Coffey International Limited, paid R20,000,000 (A$3.019 million) for the business, with the effective date of 1 April 2008. The consideration will be in cash and shares in CPA. This acquisition will be earnings per share accretive immediately.
Coffey International Limited managing director Roger Olds said that the addition of BFH provided an immediate increase in market share within South Africa, opened up opportunities in Southern, Central and Northern Africa, the Middle East and the Indian Ocean islands, and broadened the scope of specialist services offered by Coffey Projects.
“The integration of BFH into Coffey Projects is primed as the two companies have co-tenanted since April 2008. The companies work together well and there are significant opportunities immediately available from the merger.
“Sub-Saharan Africa is experiencing significant growth and future investment forecasts are strong. This is an ideal time for Coffey to expand in the region.”
The IMF predicts growth of around seven percent in Sub-Saharan Africa over the next two years[i], while the South African construction industry is expected to be valued at R94.80 billion (US$9.97 billion) by 2012[ii].
BFH operates in all areas of project management in the leisure, retail and commercial, and residential sectors. Its clients include global operators such as Mirage Developments, Raffles Hotels, Colony Finance NY, Club Med and the IAAFA, and the Commonwealth Development Corporation. High profile projects such as the Monte Casino, Suncoast Casino and the Sandton Convention Centre were managed to completion by BFH.
The company is currently involved with projects in Morocco, Ghana and Mozambique north of the South African border. In South Africa, some of the projects include ESKOM, Zimbali and Hospitality Fund projects.
BFH was incorporated in 1990 and employs 14 people. The acquisition brings the total staff for Coffey Projects in South Africa to more than 35 people.
Coffey now has more than 175 staff working in international development, mining and project management in Africa.
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Media contacts
Diana Krause, Communications Manager, Coffey International Limited
P: (+61) (3) 9473 1300; M: (+61) 420 959 942; E: diana_krause@coffey.com
Heather Potter at Mendleson Communication
P: (+61) (3) 9827 0422; M: (+ 61) 431 856 598; E: heather@mendleson.com.au
