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HD Fire signs BEE contract

HD Fire & Security has sold a 30% stake of its business to a black economic empowerment (BEE) stakeholder, Bohale Investments.

The company offers a complete range of services as an electronic system integrator, encompassing all aspects of design, installation and project management in the security, communication and fire detection. The company has been operating from its head office in Edenvale, Johannesburg, for the past 14 years, also has an office in Gaborone, Botswana, and is planning to open a Cape Town office to service the Cape area. Project capabilities extend from project analysis to pre-planning, advice and feasibility studies to design, supply, installation, testing and commissioning of systems.

The company recently entered a new era - accountant Zack Sithole, a new director (and incumbent chairman) of HD Fire & Security, has bought a 30% stake in the company.

Dylan Barry, James Hagedorn, Zak Sithole and Theo Van Rensburg

"This is a properly structured, above board and fully legal BEE equity deal, as we do not believe in 'fronting," says HD Fire & Security managing director Theo van Rensburg. Van Rensburg retains a majority 50% stake in the company while sales and marketing director James Hagedorn and operations director Dylan Barry each hold a 10% equity stake.

The BEE contract includes an undertaking by Sithole to assist the company to achieve its business target of growing its business by at least 25% a year for the next three years.

"The rationale behind our BEE deal is to ensure that HD Fire & Security will achieve the maximum number of points to qualify for procurement contracts. But, apart from the obvious business benefits, we are also sincere and serious in facilitating the transfer of skills and expertise to previously disadvantaged individuals (PDIs)," says Sithole.

Another focus for HD Fire & Security is to extend its business operations in neighbouring African states. Among the recent contracts secured or completed by the company are a R20-million contract at the Mozal aluminium plant in Mozambique, a R31-million turnkey project at the Riverside legislature for the Mpumalanga government, and various contracts fulfilled in Mauritius, Zimbabwe, Botswana, Nigeria and Tanzania.

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