Christo Wiese’s Invicta moves to acquire UK-based spare parts distributor, KMP Holdings, in $17-million deal

Invicta Holdings, an investment company led by South African billionaire Christo Wiese, has agreed to buy out a 100-percent stake in KMP Holdings Limited in a deal worth R269,396,552 ($17 million).

In a notice sent to the Johannesburg Stock Exchange, Invicta said it will acquire 100-percent of the issued share capital and shareholder loans payable by KMP Holdings.

An analysis of the deal revealed that Invicta has already doled out the first tranche of $13.5 million. It is expected to pay an additional $2.7 million within 45 days of the completion date (Jan. 1, 2022).

In addition, Invicta is expected to deposit a maximum of $675,882 for the upward or downward adjustment of the purchase consideration based on KMP’s net-asset value relative to the amount that it paid on the completion date.

KMP Holdings is a leading diesel engine spare part and earthmoving equipment distributor in more than 150 countries. Its main distribution facilities are located in Chertsey (UK), Houston and Miami.

Invicta is an investment holding and management company. It operates through three subsidiaries focused on the supply and distribution of engineering consumables, capital equipment and building supplies.

With the acquisition, Invicta hopes to diversify into new geographical areas in the industries and markets in which it has significant experience and strong management capabilities.

The deal will also provide the company with cross-training and skill-building opportunities, as well as potential economies of scale.

Wiese is the chairman and largest shareholder in Invicta, with a 20.7-percent stake worth more than $45 million.

In October 2021, Invicta acquired a controlling stake in Dartcom for $33 million.