WEG has announced today the acquisition of control of two companies abroad: Zest Group, a company based in South Africa formed by the leading distributor of electric motors in that market and by companies specializing in assembling industrial electrical panels, in integrating products for the assembly of gensets and in providing electrical commissioning services; and Voltran, the transformer manufacturer based in Mexico.
WEG announced the acquisition of an additional stake in the capital of Voltran SA de CV, a Mexican company transformer manufacturer, taking its stake to 60 % of capital.
The partnership between the two companies began in 2006, when WEG acquired a 30% stake in Mexican company from the controlling shareholders, the Jimenez family. Voltran manufactures power and distribution transformers and recorded revenues of around $ 70 million in 2009.
The partnership is becoming more intense as the Mexican markets enter a period of good prospects for consolidation of market share. " Voltran has a very strong brand in Mexico and has gained the preference of customers with high quality products and delivery capability," said the CEO of WEG, Mr. Harry Schmelzer Jr. "The excellent results obtained in this partnership motivated us towards this decision. Both WEG Mexico and Voltran showed strong growth in the last four years, above what each of us could have achieved on our own. We have qualified ourselves to advance beyond Mexico, definitely entering the energy equipment market in the U.S. "added.
For WEG’s CEO "the acquisition brings synergy gains in administrative, engineering and sales areas. These gains will allow our progress in the local production of new lines, such as dry transformers, and to supply more complex solutions, such as power substations.”
See photos of Voltran and some supplies in the Mexican market: http://bit.ly/bIeIkk
ZEST Group is South Africa and is formed by the leading distributor of electric motors in that market and by companies specializing in assembling industrial electrical panels, in integrating products for the assembly of gensets and in providing electrical commissioning services.
Over 30 years of existence, ZEST Group became WEG’s partner in South Africa, importing and distributing WEG‘s products. During this period, the group gained significant participation in all business lines, particularly in electric motors, in which he became leader of the South African market. The customer base is formed by the major companies operating in South Africa, among them companies in the mining, oil & gas and energy segments.
WEG’s CEO, Mr. Harry Schmelzer Jr., highlighted the attractiveness of the transaction, asserting that "South Africa is already an important market and the prospects are that the country and continent will continue to grow above the world average." Mr. Schmelzer stated that "the work done by ZEST Group in the South African market was truly remarkable. We believe the combination of this team of people and the direct involvement of WEG will form a strong recipe for continued growth and enable us to seize larger opportunities, expanding business throughout the African continent."
The CEO of WEG also highlighted the possibility of using WEG's experience in other markets to further develop its presence in South Africa "We can leverage our extensive experience in energy, mining and oil & gas in our performance in this market."
ZEST Group, which recorded revenues exceeding $ 200 million last year, will be incorporated into WEG once the transaction is concluded, becoming WEG’s twenty-fourth subsidiary abroad. "This is another important step in WEG’s internationalization strategy" added Mr. Schmelzer.
See photos of WEG supplies in the South African market in: http://bit.ly/dxKuXj