Durban, South Africa, Dec. 9--Automotive component group Feltex, has acquired the automotive carpet unit of Marley for an undisclosed sum.
The deal forms part of Feltex's stated R120m (US $13 million) expansion aimed at increasing the company1s sales ($108.6 million) by 2004.
The group intends to invest in the automotive sector over the next two years in an effort to enhance the advantages that stem from this initial investment.
Group CEO Rob Radford said the deal, along with several more scheduled for next year will reinforce Feltex's belief in the automotive sector in South Africa. He said the sector was particularly relevant in terms of the growth potential represented by the
various motor manufacturers' export programs.
The expansion program is aimed at establishing Feltex as an internationally competitive partner to the country's original equipment manufacturers, which the company said will continue with further strategic acquisitions and technological upgrades.
The move complements the Feltex acquisition of National Converter Industries earlier this year.
That acquisition was integral to Feltex's strategy of expanding its presence in each of SA's automotive industrial centers.
Marley1s flooring division managing director Donald Platt said the company was focused on the building sector and thus did not view the automotive carpeting division as a core business. As a result, he said, the annual investment needed to grow the sector was not a priority and selling the division to Feltex was a logical solution.
