INVESTEC ACQUISITION OF BLUE STRATA GROUPPublished on: July 2, 2015
Investec is pleased to announce that it has acquired the remaining 51.5% shareholding which it doesn’t already own in the Blue Strata group. Blue Strata is a pioneer in providing fully integrated import and trade financing solutions in South Africa, handling thousands of shipments and importing billions of Rands of product annually for its clients. Blue Strata was recently named the winner of the Master’s Zenith category at the 2014 Accenture Innovation Index Awards.
Blue Strata facilitates every aspect of an import transaction from order placement, confirmation and tracking through to the hedging of foreign exchange risk and the management of import logistics until delivery to the client’s warehouse. On delivery of the goods, Blue Strata provides a single invoice consolidating the total landed Rand cost per item, effectively becoming a local supplier of an imported product. By financing the cost of goods as well as the forwarding and clearing costs involved in the import transaction, Blue Strata releases a client’s working capital that is tied up in imports and provides the client with payment terms that closely match their cash flow cycle.
Investec Chief Executive Officer, Stephen Koseff says, “Investec and Blue Strata have had a very fruitful partnership over the past thirteen years since Blue Strata’s founding in 2002. As import regulations and complexities increase, the full integration of the remaining 51.5% into Investec offers Blue Strata the opportunity to unlock substantial benefits as well as accelerate its growth trajectory.”
Blue Strata co-founder and Chief Executive Officer, Adam Orlin comments; “While we have always had a close relationship with Investec, this transaction allows us to grow the business substantially by leveraging Investec’s client base, balance sheet and expertise in complementary areas such as credit management and foreign exchange”.
Head of Corporate and Institutional Banking at Investec, Richard Wainwright added; “The transaction is in line with Investec’s strategy of offering value adding, differentiated services to our clients and Blue Strata offers a compelling proposition by simplifying the import process. We foresee exciting benefits unfolding as we offer these services to more of our clients.”
The effective date of the transaction was 1 March 2015. The deal went unconditional on Friday the 19th June after the necessary agreements were signed on 2 April 2015
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Investec’s Corporate and Institutional Banking division provides a wide range of products, services and solutions to select corporate clients, public sector bodies and financial institutions. The division undertakes the bulk of Investec’s proprietary trading activities, as well as all non-private client deposit taking, corporate and public sector lending, project finance, acquisition and leveraged finance as well as advisory and structuring activities. The division has eight product teams that are divided equally between banking activities and financial markets activities.
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