Diversified industrial group Bidvest has sold its struggling BidAir Services business to a consortium that includes management and Africa’s biggest ground handling company.
The travel bans and lockdowns saw the air services companies in the Bidvest stable come to a virtual standstill in 2020, forcing the companies to declare losses and retrench large numbers of staff at BidAir Services, BidAir Cargo and Bidvest Premier Lounges.
Bidvest did not dally and made the decision to dispose of BidAir Services, along with its car rental business, at the end of its 2020 financial year, noting that it expected the travel, tourism and related industries to underperform into the future.
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It has been five months since Bidvest CEO Mpumi Madisa took over the helm of the industrial giant and although she s not looking to change a lot in the company, she says its acquisition pace will be quicker.
Madisa took over from former CEO Lindsay Ralphs in October 2020 after his retirement and, at 41, her age makes her stand out among her older JSE company peers.
But she is no stranger to the company, having been there for seven years, with Ralphs and founder Brian Joffe showing her the ropes.
Since its establishment in food services 33 years ago, Bidvest is known for the diverse portfolio that that now spans the services, freight, branded products, commercial products, financial services and automotive industries. The legacy of Joffe, who left in 2017, looms large and although Madisa will stick to the group s consistent organic and acquisitive growth strategy, she will put her own stamp on it.
The car rental industry may have stalled over the past year as the travel and hospitality sectors ground to a halt due to Covid-19 but, unsurprisingly, hygiene services have been in demand. Together with DIY products and commodity handling services, that’s supported a strong first-half performance from industrial group Bidvest.
While Bidvest’s empire extends across a number of industries, hygiene has been a staple of its business since the acquisition of Steiner 30 years ago. Since then, Bidvest Steiner has quadrupled its reach organically to become one of the biggest hygiene service providers in South Africa, competing against global players.