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Kovco acquires Jack Agencies to enhance natural refrigerant offerings
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OFFICIAL PUBLICATION
When measurement matters
In a strategic move to strengthen its position in the refrigeration industry , Kovco , owned by Brendan Prestage , has announced the acquisition of Jack Agencies from industry stalwart John Ackermann .
This decision comes as part of a broader shift towards natural refrigerants , particularly as industries increasingly adopt ammonia , propane and CO2 solutions . “ The current focus on reducing environmental impact is crucial , especially as we see harmful fluorinated refrigerants phased out ,” a trend that Prestage believes will shape the future of the industry .
Prestage highlighted the growing importance of natural refrigerants , noting that the landscape has changed significantly over the past five years . " Up until recently , our industry was dominated by refrigerants like Freon . However , as regulations tighten globally , particularly in Europe , there is a clear push towards more sustainable options ,” he explains .
The discussions around the acquisition began earlier this year when Ackermann reached out to Prestage . After a series of conversations , they recognised a mutual interest in combining their operations to better address the evolving market demands . Prestage ’ s primary motivation for the acquisition is to enhance Kovco ’ s capabilities in providing natural refrigerants .
" CO 2 is becoming increasingly relevant , especially in the supermarket sector ." He believes that this acquisition will diversify Kovco ’ s offerings while providing a competitive edge in the industrial sector .
Ackermann , the key figure from Jack Agencies , will remain with the business for the next two years to facilitate a smooth transition and share his extensive experience . Jack Agencies will remain a standalone business operating from the same premises so as to retain goodwill ,” Prestage states .
" Having someone with Mr Ackermann ' s expertise will be invaluable as we leverage the strengths of both companies . Jack Agencies has a strong reputation and has been established for many years , so we intend to leverage its brand rather than absorb it completely ,” he explains . Prestage plans to identify synergies between the two businesses , blending Kovco ’ s technologically advanced practices with Jack ’ s established operations . He sees this as an opportunity for the Kovco team to learn from Ackermann ’ s experience while gradually implementing its own processes .
Central to this strategy is Richard Drummond , a seasoned professional who brings over 22 years of experience from Danfoss , along with a robust background in refrigeration . “ Richard ’ s expertise with
All images by © Cold Link Africa
By Eamonn Ryan
John Ackermann at his desk at Jack Agencies . Longevity characterises the business .
various refrigerant technologies will aid Kovco as it shifts towards more ecofriendly options . He ’ s currently building his knowledge across the product lines , particularly those from Parker and Herl , which we heavily rely on him for technical support ,” Prestage adds .
This integration includes leveraging Jack Agencies ’ existing client base , which overlaps with Kovco ’ s , to maximise business opportunities .
Prestage acknowledges the challenges posed by transitioning to flammable refrigerants , particularly in the South African market where training and education levels vary . “ We need to be cautious about implementing these solutions in areas where safety concerns exist ,” he cautions . He emphasises the importance of selecting qualified contractors to manage the installation and maintenance of these systems , ensuring safety and reliability .
Jack Agencies has established itself as a distributor of ammonia products from Parker , which has bolstered Kovco ’ s existing offerings that include Danfoss components . Prestage highlighted that this dual representation positions Kovco uniquely in the market , as both product lines cater to the ammonia sector but at different price points . “ This allows us to meet diverse customer needs while maintaining a focus on safety and compliance ,” he noted .
The acquisition is not expected to bring immediate changes for customers , as Jack Agencies will continue to operate independently . Prestage emphasises that the goal is to enhance the business gradually through shared expertise and resources . “ We ’ re looking to improve efficiencies and offerings , not to disrupt a successful operation ,” he adds .
As the refrigeration industry faces the retirement of many experienced professionals , Prestage underscored the importance of knowledge transfer within Kovco and Jack Agencies . “ We ’ ve lost valuable industry veterans , but we ’ re committed to ensuring that their expertise is passed on to the next generation ,” he remarks . The collaboration with Jack Agencies provides an opportunity for learning , especially regarding the stringent health and safety standards associated with ammonia refrigeration .
“ We ’ re investing in not just the brand and client relationships but also the operational knowledge and expertise that come with it ,” he explains . This investment aligns with Kovco ' s long-term strategy to foster innovation and sustainability in the refrigeration sector .
Prestage points out the importance of continuity in business operations . “ The relationships that Mr Ackerman has built over the years are invaluable , and it ’ s difficult to quantify that .” CLA
We ’ re looking to improve efficiencies and offerings , not to disrupt a successful operation .
COLD LINK AFRICA • January / February 2025 www . coldlinkafrica . co . za 5