Sphere Holdings leads merger between Target Cranes and Babcock
Sphere Holdings was instrumental in conceiving and executing the merger between portfolio company Target Cranes and the plant hire business of Babcock International Group in Africa to form the 2nd largest mobile crane hire business in the country.
Now called Babcock Target Plant Services, the new company will benefit from enhanced management skills and capacity, cost synergies, geographic reach and access to new customers. The newly formed company boasts a Level 3 BBEEE Contributor Status.
Sphere Holdings took a 32.5% stake in Target Cranes in 2008, believing the investment to be attractive due to its exposure to the high growth infrastructure sector and the potential to grow the Cape headquartered business through expansion to the inland market. At the time the business was established with a strong skills base and critical mass in terms of the number and sizes of cranes. Notably there are high barriers to entry in the crane hire industry. For Target Cranes, the business opportunities available to the company were significantly enhanced by a BEE shareholding.
With Sphere’s foresight in setting up the merger, Babcock Target Plant Services will be a key player that is well-poised with the capacity to meet the demand for industrial plant services in key growth sectors. Sphere is proud to have once again played a role in the transformation of South Africa’s business landscape by creating a large empowered organisation in a critical industry.