The deal is subject to achievement of profit targets over a three-year period. Funding will be through the issuance of R5 million of Workforce shares to vendors, with a balance in cash over a three-year period. All jobs at Prisma will be retained after the purchase, with key management having signed service contracts to ensure the continued success of the business, which will operate as a standalone company under the Training Force umbrella.
"The acquisition allows us to diversify further, in line with our strategy of adding depth to our service offering, expanding our geographic reach, and following through on our promises to investors that we would grow the company through organic as well as acquisitive growth," says Lawrence Diamond, CEO of Workforce Holdings.
Prisma was established in 2007 and offers technical training in mining, team development and supervisor development. The company is Mining Qualification Authority (MQA) accredited and Alpha ISO 9001:2008 certified. It has completed training projects for underground and surface workers for prominent mining companies such as South32, Anglo Coal, De Beers, Anglo Platinum, Kumba Iron Ore, Swakop Uranium, Lanxess Chrome Mine and Koidu Holdings, in countries as diverse as South Africa, Namibia, Botswana, Ghana, Sierra Leone and Tanzania.
The company has built a strong reputation by building long-term relationships with stakeholders in the mining sector and by providing certified and relevant learning opportunities for employers, employees and community members, as it believes that education is a key imperative for the survival of the mining sector.
"We look forward to working with the new team to expand our service offering into the mining sector and to extend our geographic reach further into Africa, leveraging off its network of relationships and technology infrastructure in countries we have highlighted as holding great opportunity for growth," says Steven Herscovitz, MD of Training Force.
"Joining the group will give both our companies the opportunity to enjoy strategic growth," adds Braam Fourie, MD of Prisma. "We plan to leverage off the group's existing geographic footprint, which was highly attractive to us. The group's entrepreneurial ethos and carefully planned strategy for expansion are in line with our vision for the future, and we're looking forward to working with the Training Force team to offer our solutions to its clients and provide access to our mining expertise."