The directors of CSI are pleased to announce that an agreement has been reached with the directors of RVI that sees CSI acquiring the two trading divisions of RVI comprising the Smoke and Heat Exhaust Ventilation Systems Division (SHEVS) and Architectural Solution Division (AS).
The SHEVS Division offers turnkey solutions to the South African fire protection industry, solutions which are complemented by internationally certified products which are locally manufactured to accredited performance standards.
The AS Division similarly offers turnkey solutions encompassing the in-house ability to design, engineer, manufacture as well as install and commission application specific solar shading systems for any building application.
The rationale for the transaction includes:
- In will protect at least 45 jobs
- It will provide certainty to customers of RVI all current contracts will be completed and performance commitments honoured
- It will give confidence to future customers of RVI that the financial underpin of CSI will allow proper execution of future contracts
Chris Edwards will manage the RVI division; having been involved extensively in both divisions of RVI since its inception in 2005. His experience and industry knowledge together with the dedicated team of RVI will prove invaluable to the growth of the business and its ability to serve the market.
Brief overview of CSI
CSI is a market leading industrial conglomerate that comprises two principal business units, namely:
- Global Roofing Solutions (“GRS”), one of the largest metal roofing and roofing accessory manufacturers in South Africa, servicing the construction and roofing industries in South Africa and Sub-Saharan Africa; and
- Stalcor, one of the top three distributors of stainless steel and aluminium products in South Africa, servicing customers in the fabrication sector and steel merchants.
CSI’s combining of its project based businesses (GRS) and its trading businesses (Stalcor) has promoted synergies and created balanced revenue and cash flow streams for the group. CSI is projecting revenue of approximately R2,5 bn in its 2018 financial year
The CSI businesses are pedigreed, having:
- highly established brands in the construction and steel fabrication industries;
- trading histories spanning over 50 years;
- a profitable and highly sought after African footprint;
- innovative and skilled management teams;
- a stable work force of approximately 1,000 people;
- a high growth history over the past 4 years – which bears testament to effective counter cyclical economic strategies; and
- expected double digit growth over the next 3 years, despite a slow growth economy.
This transaction enables the two parties (CSI and RVI) to offer a unified specification and marketing team that will service the African market.
Stalcor has recently secured the exclusive South African distributorship and a sub-Saharan distributorship to Alubond. Alubond is a metal composite panel consisting of two layers of a metallic skin like Aluminum, Stainless Steel, Copper, Zinc, Titanium etc., sandwiching a fire rated core in a continuous co-extrusion process. These two distributorships are the latest in an ever increasing basket of products that CSI, via its divisions, is building to make the purchase process much more seamless for its customers. The group does aspire to be a “one stop” shop for its customers
Marius Smith, Managing Director of GRS, says the expertise of the two parties is a winning combination and that this initiative will help GRS and CSI to meet a number of its strategic goals.
“RVI’s smoke ventilation solutions are certified systems that give clients complete peace of mind when installing any of GRS’ comprehensive and trusted roofing systems. Joining forces gives us the opportunity to provide a one-stop solution to clients across the continent,” says Smith.
GRS, which has 10 branches in South Africa as well as production units in a number of African countries such as Botswana, Ghana, Mozambique, Zimbabwe and Namibia, is well-positioned to facilitate a structure that takes RVI’s renowned ventilation systems to the doorstep of clients. The company will be manufacturing premier ventilation systems at the Helm Engineering (a GRS subsidiary) plant in Isando, Gauteng, which has extended its operating hours as well as employed a number of RVI’s staff to meet this demand.
“The steel industry is volatile at the moment but instead of tightening our belts, we are looking at how we can create an environment that will contribute to the South African Government’s National Development Plan of reducing poverty and job creation. In the recent past, GRS has created 400 jobs,” says Smith.
Expanding, streamlining and distributing more efficiently
This latest partnership forms part of GRS’ expansion and streamlining strategy. The company’s support functions have been centralised at the Isando office in Johannesburg, and the manufacturing plant is now able to support the many branches across the country and continent.
“At GRS, we make sure that the route to market is as seamless as possible, and that means having active representation in multiple regions of the country. Our footprint in Africa, combined with RVI’s premier smoke and ventilation solutions and GRS’ expertise in roofing solutions, will help both companies exponentially grow their market share in the built environment. The synergy of our teams’ expertise and the economies of scale that our manufacturing plant is able to deliver means that we are able to produce and distribute roofing solutions more efficiently than ever before. I am excited about this development in our business and look forward to the sustainable growth that it will deliver to a number of communities in which we operate,” concludes Smith.
Chris Edwards, the MD of the RVI division confirmed “The agreement between CSI and RVI is exciting on multiple levels, it allows RVI to capitalise on its international partnerships and to offer the RVI range of products and services to a far broader market. There are synergies to be realised between RVI, GRS and Stalcor and we look forward to maximising these in the near future. The CSI – RVI agreement ensures that RVI will be able to meet all our customer needs both now and in the future. The CSI outlook on business and its culture is energising and positive and everyone at RVI looks forward to becoming part of and contributing to this exciting future”.