In breaking ranks with the spate of international investments in the South African security industry, Enforce Guarding has announced that the company has concluded an empowerment led management buy-out. The transaction of an undisclosed sum has resulted in a 60% majority shareholding being acquired by Durban businessman, Sibusiso Ncube.
Enforce was recently rated by Credit Suisse First Boston as one of South Africa's top 12 key security industry players and ranks amongst the top 10 guarding entities in the country. Employing close to 3000 staff on a national basis, the security group is thought to be the most significant privately owned security business in South Africa. Following this transaction the company will now also become the most significant black economically empowered security business in the country.
Staff and customers are assured of minimal changes in terms of reporting lines and relationships as most of the existing directors of Enforce Guarding will remain on as shareholders and directors. Those remaining on board will be Dave Birkett (managing director), Anthony Feuilherade (key accounts director), Derek Lategan (operations director) and Clinton Phipps (financial director) who have taken up the balance of 40% of the business between them. Majority shareholder, Ncube, has already taken up an active and full time role in the capacity of business development director.
"We are extremely excited at the opportunities that will present themselves as a result of this transaction," said Ncube. "The security industry, like others, has been guilty of window dressing and so-called 'black washing' with some organisations trying to hold on to the past and not face up to the realities of dynamic new South Africa."
"On the other hand there have been BEE companies that met the correct demographic criteria but did not have the experience, expertise or resources to be able to fulfil its contractual obligations in providing a quality security service," he said. "With our shareholding structure closely resembling the demographic breakdown of South Africa, active empowerment and employment equity programs, almost 25 years private security experience and significant resources, one would have to agree that we are really well positioned to lead the security industry by example," said Ncube.
"The benefits of this transaction are numerous," commented managing director Dave Birkett, "not the least of which is benefits to our existing national blue chip client base in the achievement of their own BEE objectives."
Birkett went on to explain the company had no intention of changing its business strategy.
"We believe that we have a very successful formula that is based on a combination of a comprehensive range of security related products and services, personal development of staff and the building of close relationships with customers," he said. "We have over the years invested heavily in these areas and will continue to do so. From a product range perspective we are currently finalising the development of some really exciting product offerings to our core market sectors.
"We are also at the implementation stage of an improved customer service program that has come about as the result of many months of intensive internal and external market research. Our ISO 9001:2000 quality program is also being fine tuned to augment this service driven, continued improvement strategy," he said.
For more information contact Dave Birkett, Enforce Guarding, 031 717 5050, firstname.lastname@example.org, www.enforce.co.za
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