Eaton Electrical

In a Broad-Based Black Economic Empowerment transaction facilitated by RMB Corvest, Shalamuka Capital has become a BEE shareholder in Eaton Electric SA, a subsidiary of Eaton Corporation.

Serving sub-Saharan African for over 80 years, Eaton SA is a leading supplier to the electrical industry. As part of Eaton Corporation, a global diversified power management company with a sales presence in over 150 countries, Eaton SA is associated with high quality electrical components and energy systems.

Eaton has seen rapid growth in South Africa following its acquisition of the Actom Low Voltage Equipment (ALVE) business units: CHI Control, Meissner Uninterruptible Power and Norsa Electronics in July 2011 — making Eaton one of the leading suppliers of electrical products and services to the South African mining industry.

“The partnership with Shalamuka Capital allows Eaton to achieve a level-four BEE rating. This will help our customers, while providing sustainable economic benefits for the community through the Shalamuka Foundation,” explained Shane Kilfoil, Managing Director of Eaton’s electrical sector business in Africa. “We view this as an important component of our long-term growth strategy in South Africa, which is why we approached RMB Corvest for assistance.”

“Eaton’s partnership with Shalamuka is part of our global strategy to help create and expand the pool of highly qualified employment candidates needed in our business. We are thus delighted to partner with Shalamuka and look forward to many years of working together to grow a strong business, as well as providing support for its programme to improve education in South Africa,” said Kilfoil.

Philile Maphumulo, Director of Shalamuka Capital, said that the partnership has potentially far-reaching benefits: “By taking this unique approach to improving education, particularly with regard to mathematics and science, students who are beneficiaries of the Shalamuka Foundation could become electrical engineers working at Eaton one day. This makes this partnership a very exciting one.”

“Eaton SA’s acquisition of ALVE will offer its clients a wider range of products, and more comprehensive services and solutions, including various turnkey solutions,” said Mike Donaldson, CEO of RMB Corvest. “With demand for its products and solutions growing both locally and up into Africa, this was thus an ideal opportunity for Shalamuka to expand its investment portfolio and simultaneously make a positive contribution towards improving education in South Africa.”