Investing in South Africa

Garmin buys out SA distributor

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28 April 2011

Global satellite navigation provider Garmin is to acquire Garmin Distribution Africa, the distributor of Garmin's automotive, outdoor recreation, fitness and marine products in southern Africa, for an undisclosed sum.

"We are happy to welcome our South African team into the Garmin family," Garmin chairman and CEO Min Kao said in a statement this week. "GDA has been our South African distributor for nearly two decades, and this acquisition will only strengthen our ties to our retailers and customers in this region."

After the acquisition is completed, the company will be renamed Garmin Southern Africa, and will continue operations at its current headquarters and warehouse facility located near Johannesburg, which employs approximately 70 associates.

Confidence in South Africa

"We have worked hard to grow the Garmin brand in South Africa," said GDA chief executive Richard Fearon. "Once we are fully integrated into the Garmin fold, we expect to grow the business even more in our rapidly growing region.

"This transaction demonstrates the confidence that Garmin has in South Africa, and the importance that it places in our office as being key to further developing Garmin's African business."

The completion of the acquisition is subject to the negotiation and execution of a definitive acquisition agreement, the completion of legal and financial due diligence and regulatory approvals.

The acquisition is expected to be completed in June 2011.

SAinfo reporter