| Thu 6 Dec 2007, 11:24 | | BDM - Buildmax Limited - Acquisitions reverse tak |
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BDM
BDM
BDM - Buildmax Limited - Acquisitions, reverse take-over and renewal of
cautionary
Buildmax Limited
(Registration No. 1995/012209/06)
Share Code: BDM & ISIN Code: ZAE000011250
("Buildmax")
ACQUISITIONS, REVERSE TAKE-OVER AND RENEWAL OF CAUTIONARY
INTRODUCTION
Further to the announcement on 6 August 2007 shareholders of Buildmax are
advised that Buildmax has concluded agreements to acquire the companies
comprising the Buildco group ("Buildco") ("the acquisitions"). The
acquisitions will establish Buildmax as a leading diversified construction
materials, equipment and services supplier to the construction and mining
industries with revenue in excess of R1 billion.
Buildmax will, after the acquisitions:
* quarry, manufacture and distribute a range of materials to the
construction industry in South Africa;
* provide opencast mining services, rehabilitation services and equipment
hire to the mining industry; and
* be well positioned to capitalise on opportunities created by
infrastructural expansion and high-growth mining activity, particularly
coal-related opencast mining.
BUILDCO
Buildco comprises the following operations:
Aggregates & Quarries
Buildco`s Aggregates & Quarries operations comprise:
* Crushco, the largest river sand quarry in Gauteng;
* Wit Deep Sand and Stone ("Wit Deep") and Benoni Sand and Buildware
("BSB") which are long-established distributors of sand, aggregates and
other building supplies; and
* Alfa Sandworks ("Alfa"), Verlesha Investments ("Verlesha") and Mystic
Blue ("Mystic Blue") which have sand quarries and prospecting rights in
Gauteng.
Bricks & Blocks
The Bricks & Blocks operations of Buildco comprise:
* Columbia DBL ("Columbia"), the largest cement brick, blocks and related
product manufacturer in the Western Cape; and
* Cast Industries ("Cast"), a leading manufacturer of bricks, kerbing and
paving products based in Gauteng.
Equipment & Services
Buildco`s Equipment & Services operations comprise Vukuza Earth Works
("Vukuza"), an opencast mining services, rehabilitation services and equipment
hire business.
RATIONALE FOR THE ACQUISITIONS
Buildmax currently specialises in the manufacture and distribution of building
materials - specifically cement bricks and blocks, gutters and other
galvanised rainwater products and timber.
The acquisitions will position Buildmax for long-term growth by significantly
expanding its existing product range, achieving economies of scale and
creating opportunities to benefit from new product and market developments.
This will enable Buildmax to capitalise on government`s infrastructure
expansion plan and related private sector expenditure.
Through Vukuza, Buildmax will have the capacity and capability to take
advantage of the opencast mining and rehabilitation opportunities created as a
result of the increasing demand for coal, positioning the group for
significant organic and acquisitive growth in this area.
EXECUTIVE MANAGEMENT
Paul de Klerk and Herman Fourie are currently CEO and CFO of Buildco and will
be appointed to the board of Buildmax in a nonexecutive capacity. On
implementation of the acquisitions they will be appointed as CEO and CFO of
Buildmax respectively.
Paul has more than 15 years` experience in the construction industry with
significant experience in corporatising and integrating owner-managed
businesses into listed companies. Paul formerly served as Managing Director
(and before that Financial Director) of the General Building Materials
Division of Iliad Africa Limited. In his previous role, Paul managed 3000
employees in 51 outlets, running a division with turnover in excess of R2,5
billion.
Herman, a Chartered Accountant, brings 15 years` experience in financial,
executive and strategic management and directorship of listed and unlisted
companies. He served most recently as financial director of a major contract
mining group.
Both Paul and Herman have entered into service and restraint agreements and
will control significant interests in Buildmax after the acquisitions.
The existing management teams of Buildco have entered into service and
restraint of trade agreements and will have significant interests in Buildmax
as a result of the acquisitions.
NEW BUILDMAX GROUP
Post implementation of the acquisitions Buildmax will comprise two strategic
business units:
* Construction Materials; and
* Equipment & Services.
Each business unit will consist of the following divisions:
Date: 06/12/2007 11:24:22 Produced by the JSE SENS Department.
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