Jasco gets 51% LeBlanc stake

Johannesburg - Jasco Electronics Holdings has acquired a 51% stake in LeBlanc CIH Lighting Structures (LS) for 7 million rand, the company said on Tuesday.

LS has been in existence for over 20 years and designs, manufactures and installs lighting, broadcasting and telecommunications steel structures in sub-Saharan Africa.

The remaining 49% equity interest in LS is owned by LeBlanc Communications South Africa, a subsidiary of LeBlanc International (LBI). LBI is also Jasco's equal shareholder in WebbLeBlanc Communications (WLB).

"We are extremely pleased with this acquisition, as it is another step in our strategy to continue building our exposure to high-growth markets in South Africa and Africa.

"As with our Maringo telecommunications acquisition earlier this year, this is another small bolt-on acquisition that expands our product offering and breaks us into new markets. LS offers us a further telecommunications product in monopoles, as well as penetration into infrastructure build markets such as lighting structures and street poles.

"The investment in LS brings new customers as well as offering us further efficiency extraction opportunities within the Jasco stable. Furthermore, as our partner is LeBlanc International, we are confident that we can create another growth vehicle with them, such as we have already successfully done with WebbLeBlacn," said Jasco CEO Martin Lotz.

LS will be revenue and earnings enhancing to Jasco over the next few years as it exposes the group further to the fast-growing infrastructure and communications markets in South Africa and the rest of Africa. LS has a substantial forward order book exceeding R60m over the next 12 months and has recently secured a contract for the supply of products to the Ghana warehouse for Alcatel/Lucent, Jasco said.

The acquisition will be effective 1 September 2009 and all conditions precedent have been met.