Management buyout enables majority stake in Rely Intracast and Walro Flex

Rely Intracast’s current Managing Director Mark Hughes and the current Managing Director of Walro Flex, Carlos Palinhos, have completed a MBO (management buyout) to become majority shareholders in the respective companies that will in future fall under a recently established industrial holding company Intakobusi Holdings (Pty) Ltd.

“We are very grateful to the shareholders of Allied Production Industries, the holding company that both Rely Intracast and Walro Flex have been operating under, for allowing us to complete this MBO as we see it as an important milestone in realising our ambitions for both companies,” said Mark Hughes who has been the Managing Director of Rely Intracast for the last seven years.

“Although Carlos and I are the majority shareholders of Intakobusi Holdings, the MBO has also afforded the opportunity for the current group Financial Director Emmah Raphela, and the two divisional directors – Peter Willers and Harry Erasmus – to also become shareholders of Intakobusi.”

“We specifically chose the name Intakobusi because of the symbolism that is associated with it. In the isiXhosa language spoken in South Africa Intakobusi is “the bird of honey” or more generally known as the honeyguide.”

This operation was originally a division of Allied Production Industries and traded under the name of Walro Flex, which is still the trade name of the cable the company manufactures. BGG Cable Manufacturing specialises in and is the only independent manufacturer of automotive wire and battery cable in Southern Africa. In 2003 the joint venture company BGG was purchased from its parent Gebauer & Griller of Austria and the two operations merged on the Walro Flex site in Alberton North, Gauteng.

At the time of the purchase of BGG a technical transfer agreement was signed with Gebauer & Griller, a leading automotive cable developer and manufacturer in Europe and this technical relationship is still enjoyed today.

Carlos Palinhos, the current Managing Director, was appointed to the position in 2013. Palinhos had previously worked at Rely Intracast for the majority of his 20 years experience in the foundry industry.

“When I was appointed MD the company had a 95% exposure to the automotive industry with the manufacture and supply of harness wiring to the local OEMs such as VW South Africa, Toyota South Africa, Ford South Africa and Nissan, amongst others.”

“I have gradually changed that mix and the automotive industry now only makes up 50% of our production. Non-automotive cable in the low to medium voltage range of highly flexible conductors, which are used in the manufacturing of low voltage switch gear and carbon brush assembly on electrical motors, are now very much part of our product range, as are many other specialist products.”

Both companies boast ISO 9001:2008 and TS16949:2009 quality management certification and between them they employ 235 staff.

“We have an established team of directors in place with the drive, determination and vision to take the business forward to an exciting future. We aim to build on our long-standing business relationships, and continue to grow our business with clients and suppliers alike.”

“The name of the holding company and the ownership has changed, but the people, and their expertise, are all still here,” concluded Palinhos.

Management buyout enables majority stake in Rely Intracast and Walro Flex