Eos buys into Eco to add another link in its strategy to establish an integrated water services and consulting group
Eos Capital is trying to do what nobody else has done before, – building a vertically integrated water services group.
This week it announced the pending acquisition of stakes in subsidiaries of the Eco Group, adding another link in its quest to offer water services that cover the full spectrum from treatment to bulk distribution, and now to reticulation.
Effecting the deal through its equity investment arm, the Allegrow fund, Eos said it is set to acquire various stakes in the Eco Group of companies that are majority-owned by Bernd Izko. Final approval for the acquisition must still be obtained from the Namibian Competition Commission.
Eos Capital’s Ekkehard Friedrich explains: “We are pursuing a buy and build strategy that started with Heat Exchange Products for water treatment, then Valco Pipes for bulk water solutions and now we are pleased to add more valuable pieces to this puzzle with this investment.”
“Our aim is to build a scaled water and engineering services firm and EcoGroup will fit in squarely with strong offerings in process instrumentation, valves and an established shared services platform that can be leveraged across the group and beyond. With this addition we are one step closer to being an all-Namibian firm that is able to offer a world class engineering solution and compete with international players who have dominated this landscape,” he said.
For the next two years, Izko will remain Group Chief Executive, to oversee the implementation of several expansion strategies, notably the local assembly of valves, and technology support to clients to add more local value to the group’s consulting and administrative capacity.
Izko commented that upskilling and staff incentives have always been at the centre of their strategy and that the group will continue with this in the context of its expanded operations.
Eco Group serves the mining, food and beverage, and power generation industries. The group comprises three related companies, EcoTech, EcoValves and EcoGroup Admin.
EcoTech offers high-tech process control and instrumentation solutions, EcoValves is mainly focused on selling industrial valve solutions and EcoGroup Admin is a shared services centre for engineers.
Caption: The EcoGroup’s Windhoek (left) and Swakopmund teams are instrumental in the company’s ability to offer large-scale water solutions to a range of local companies.