The well-known South African electrical engineering group, Actom, has acquired the specialist air conditioning engineering and contracting company Luwa SA from its South African shareholders. The acquisition, via Actom’s Power Conversion Division, was concluded in January and effective from 1 February 2011.
Luwa SA was established in 1971, so this year marks its 40th anniversary. The company is one of the leading players in industrial ventilation and air conditioning and offers design, manufacturing and installation capabilities. Luwa SA has offices in Pinetown, KwaZulu-Natal and Brackenfell in Cape Town.
Paul Cuthbert, managing director of Actom’s Power Conversion Division, said the acquisition complements the group’s activities in the air movement, air pollution and dust control markets and further reinforces its commitment to investing in quality South African engineering companies aligned with its market focus.
“Actom is well established as a major supplier of control systems for gas and dust emissions as well as fans for industrial, mining and power applications. The acquisition of Luwa SA extends our involvement into new industries such as healthcare and pharmaceuticals via Luwa’s Clean Room Technology,” he said.
Luwa will operate as a stand-alone business within Actom’s Power Conversion Division. “We view the company as a successful and well-run operation and have no intention of incorporating it into another business unit,” Cuthbert emphasised.
Frank Van Dongen, managing director of Luwa SA, said, “From our point of view, an important benefit of the deal is that by becoming part of one of the most forward-looking BBBEE (Broad Based Black Economic Empowerment) groups in the country, we gain meaningful status, which opens up new business opportunities for us.
“Another major benefit for our company is that the financial muscle of Actom, with its strong balance sheet and successful track record as a locally owned group, promises a solid capital base from which we can more easily expand our business as requirements demand.
“We continue to have access to international technology through Luwa, which is a global player in air conditioning in the textile industry, and we can offer solutions to industry generally, based on 40 years of local experience.”
