| Wed 7 Nov 2007, 7:30 | | ILA - Iliad Africa Limited - Iliad Africa acquires |
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ILA
ILA
ILA - Iliad Africa Limited - Iliad Africa acquires National Tile Traders
Iliad Africa Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/011938/06)
Share code: ILA ISIN: ZAE000015038
("Iliad")
Iliad Africa acquires National Tile Traders
Iliad Africa Limited, the JSE-listed building materials supplier, has finalised
an agreement to acquire National Tile Traders, a chain retailing tiles, taps and
sanitaryware from nine outlets in three provinces.
Subject to regulatory and competition approvals, the acquisition - concluded at
a price:earnings ratio of 4 times - will add some R100 million a year to Iliad`s
turnover and expand the cash-and-carry focus of its specialist building
materials division. The acquisition will be effected through Iliad`s new
subsidiary, Tile and Decor Mart, in which previously disadvantaged management
hold 30%.
Iliad has also just received competition authority approval to proceed with its
earlier acquisitions of Thorpe Timers and USM Building Supplies.
Iliad`s chief executive officer, Ralph Patmore, says, "With outlets in key
points in Gauteng, North-West and Free State, National Tile Traders marks our
entry into the important middle to lower cash-and-carry segment of the ceramic
tile and sanitaryware market.
Backed by the resources of the Iliad group, and an aggressive store opening plan
once profit warranties have been met, we are confident of at least tripling
National Tile Traders` annual turnover in the medium term."
"In line with our approach of owner-manager business units, the highly capable
and experienced management team has been retained, and will become shareholders
in Tile and Decor Mart, further expanding the group`s empowerment base."
Apart from this most recent corporate activity, Iliad has added R320 million to
annual turnover through acquisitions since July 2007, primarily Thorpe Timbers
and USM Building Materials. As before, Iliad will fund the purchase of National
Tile Traders from internal cash resources and add value through its financial
management and procurement expertise. Given the length of approval and other
processes, new acquisitions will only begin to contribute in the 2008 financial
year.
Patmore says Iliad has built a solid track record of strong growth through
prudent acquisition and seamless integration. Since listing in 1998, turnover
has risen from R370 million to R3.3 billion at December 2006, and will exceed R4
billion in the 2007 financial year.
"Iliad has significant cash resources for further acquisitions and we are ready
to take on debt if necessary to optimise our balance sheet, but within a
conservative level of gearing."
The combination of strong growth and cash resources made Iliad the target of an
unsolicited bid earlier in the year. Patmore says that although discussions were
terminated, he and senior management are pleased with the outcome as the group`s
medium-term opportunities are significant.
Johannesburg
7 November 2007
Sponsor: Bridge Capital Advisors (Proprietary) Limited
PREPARED ON BEHALF OF ILIAD BY CATHY FINDLEY PUBLIC RELATIONS ON (011) 463-6372
OR EMAIL
CATHY@FINDLEYPR.CO.ZA
Date: 07/11/2007 07:30:02 Produced by the JSE SENS Department.
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