Johannesburg, 31 March 2025 – AECI, today, announced that through its wholly owned subsidiary, Improchem Proprietary Limited (Improchem), entered into a binding memorandum of agreement for the disposal of Improchem’s Public Water business (Public Water Business), (Proposed Transaction), to a South African majority black-owned special purpose vehicle (the Purchaser), with Nsukutech Proprietary Limited (Nsukutech) as the controlling shareholder and Junaco (T) Limited (incorporated in Tanzania) (Junaco), as the minority shareholder.
AECI Group CEO, Holger Riemensperger said: “Divesting our Public Water Division delivers on our strategy to dispose of non-core assets, streamline operations and optimise our portfolio. It will support our capital allocation strategy and position AECI for sustainable growth and to focus on improving the performance of our core business.”
The Public Water Business is a separate division of Improchem’s water business and includes the manufacturing and supplying of water treatment chemicals, providing engineered water treatment solutions and supplying other complimentary products to the public water sector.
Nsukutech specialises in the manufacture of speciality chemicals for water treatment, mineral processing and other applications. Junaco is a Tanzanian-based company and a leading supplier of water treatment chemicals and equipment across Eastern and Southern Africa. Junaco has played a key role in the export of AECI’s water treatment chemicals across Africa, with a partnership that has spanned over 15 years.
The Public Water Business will continue supplying its direct clients and distributor network in anticipation of a smooth transition of assets, capacity and contractual opportunities to the Purchaser and will ensure continuity of service and supply into the public water market, once the Proposed Transaction is concluded.
AECI is optimising its portfolio to create a platform for growth with the company is focusing on its core business, namely AECI Mining and AECI Chemicals and divesting from managed businesses with limited synergies with the chosen core businesses.
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