PHOTO: Ian Victor has been appointed managing direct of MCG, based in Malvern, Johannesburg. A mechanical engineer with an MBA, Ian has extensive experience in industry: he first worked in the blast furnaces at Iscor; then joined the Group 5 company Everite Building Products. In 2001 he joined Dunlop Industrial products in Benoni as works manager and, when Dunlop sold off its Industrial products division, moved to Pandrol SA as MD. Pandrol is a manufacturer of products for the mines and railways; he was MD of Pandrol Mozambique for the past five years too. He also sat on the board of Pandrol’s holding company, Sturrock & Robson Industries
As co-investor with Sasfin, Zico will have a significant interest in the business. MCG is a market leader in the manufacture of injection moulded products, particularly crates, servicing customers in the beer, soft drinks, agricultural, dairy, bread and poultry industries. It operates manufacturing plants in Johannesburg and Cape Town.
“MCG is a solid business with strong market position. This acquisition presents us a solid platform on which we would seek to bolt on other synergistic businesses. Additionally; we are pleased to have concluded the acquisition with Sasfin Private Equity, our partner in the business,” said Zico CEO Tshego Sefolo.
The acquisition signifies a new era for MCG, which has been in operation since 1956: the company is currently involved in a growth phase, including product expansion, made possible through a licence agreement with Schoeller Arca Systems of Germany, one of the largest global manufacturers of injection moulds. The agreement gives MCG access to Schoeller’s global product range and R+D resources for future product lines. Market extension into the agricultural sector and specific opportunities for MCG to take its product offering beyond South Africa’s borders into the rest of Africa will also provide growth.
‘Acquisition opportunities’
“The acquisition of MCG by Sasfin and Zico is a significant milestone for the business and its growth prospects. We are excited to be supporting the robust management team of the business to achieve such growth prospects. Furthermore, we are actively exploring additional acquisition opportunities in the sector,” said Neil Eppel, head of private equity at Sasfin.
MCG has a predominantly blue-chip customer base in a number of different industries; its products include crates and containers, pallets and chairs (for schools, auditoriums, passenger trains and stadia).
www.zico.ca.za
www.sasfin.co.za