Omnia Group acquires a 90% stake in Umongo
Chemical services business Omnia Group has acquired a 90% stake in Umongo Petroleum in a bid to strengthen its sub-Saharan strategy. Umongo’s business is viewed as a perfect complement to Omnia’s chemical business Protea Chemicals, which has a wealth of experience in the distribution of chemicals and polymers in sub-Saharan African countries such as South Africa, Namibia and Kenya. Umongo has supply and distribution agreements for the supply of additives from Chevron Oronite and base oils from Chevron Products Company into the South African and sub-Saharan Africa markets.
Chevron Oronite develops and markets quality additives that improve the performance of fuels and lubricants while Chevron Products Company provides a reliable global base oils supply through its production facilities; Omongo is a supplier of these products to several of the largest lubricant, oil and petroleum companies.
The addition of Umongo’s base oil, additive and lubricant business to Protea Chemicals will broaden its current product offering and create multiple opportunities for it to grow and expand its business.
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Umongo recently acquired 100% of Orbichem Petrochemicals, the distributor of the Ergon range of products in South Africa and sub-Saharan Africa. Omnia will acquire the 90% stake in Umongo for R780-million, which will see the company become a subsidiary of Omnia, falling under the chemicals division. However, Umongo will continue to operate as a stand-alone entity within Omnia.
Rod Humphris, group managing director of Omnia: “The group has a strong balance sheet and over the last two years we have been in a cash-positive position. Secondly, we saw a gap and acquiring Umongo will be good for our chemicals division, because the base oil is an important product range we are not involved in,” he said.
Based in Johannesburg, South Africa and with operations in 15 African countries and six international countries, Omnia has more than six decades of experience with units in Australasia, Brazil and Mauritius and clients in other regions such as Europe, South America and South-East Asia.