Verdant IMAP has advised Germany-based DEKRA SE on the sale of DEKRA Automotive (“DEKRA”), the largest independent vehicle testing group in South Africa.
South Africa-based DEKRA specialises in legislated automotive roadworthy testing through its vehicle inspection and testing stations nationwide and also provides other non-regulated inspection services such as certification services, condition reports and technical inspection checks.
DEKRA SE, headquartered in Stuttgart, Germany with operations in 60 countries, completed over 31 million vehicle tests in 2023.
The transaction attracted strong interest from private equity and strategic buyers alike.
The transaction reinforces Verdant IMAP’s position as a leading advisor in the industrials sector, as well as its success supporting M&A exits for a broad range of clients, including leading multinationals, private equity and owner managers.
Terms for the transaction were not disclosed.
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South Africa is the second largest economy on the continent, only exceeded by Nigeria, which has more than three times the population size. Over the past decade, South Africa has experienced rapid change and is ranked by the World Bank as an “upper middle-income country”. Of the more than 400 companies on the continent earning more than $1bn annually, about half are in South Africa. The country is nevertheless highly divided, with a large part of the population living in poverty. The division makes South Africa an interesting economy with possibilities in many segments. The country have well-developed infrastructure and world-class financial sector to support business activities, and is one of the highest ranking African countries on the ease of doing business index.