The Defence arm of the Düsseldorf-based Rheinmetall Group continues to expand its foothold in South Africa. Rheinmetall has agreed to buy Laingsdale Engineering (Pty) Ltd of Maitland from the South African company Tellumat (Pty) Ltd of Cape Town.
Laingsdale Engineering specializes in developing and producing precision mechanical components. Its 180 employees generated sales in FY 2009 of approximately €10 million.
Assuming certain contractual conditions are met, the takeover is scheduled to come into effect on 01 November 2010. The two parties have agreed not to disclose the purchase price.
Rheinmetall Waffe Munition GmbH of Unterlüß, Germany, will henceforth own a 51% stake in Laingsdale Engineering, with Rheinmetall Denel Munition (Pty) Ltd of Somerset West, South Africa, holding the remaining 49% share.
The acquisition adds to Rheinmetall Defence’s expertise in the field of ammunition technology, and promises to increase Group sales volume in South Africa and third countries significantly.