| Fri 4 Apr 2008, 10:22 | | LAF - Lonrho Acquires 51% Of African Fresh Produce Group Rollex |
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LAF
LOLAF
LAF - Lonrho Acquires 51% Of African Fresh Produce Group Rollex
Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
4 April 2008
Lonrho acquires 51% of African fresh produce group Rollex.
Lonrho Plc (AIM: LONR), the conglomerate with a structured portfolio of African
investments, today announces that it has signed an agreement to acquire a 51 per
cent stake in an agri-processing and logistics company, the Rollex Group
("Rollex").
Rollex, which was established in 1989, sources, packs and delivers fresh fruit,
vegetable and fish produce from across Africa to its network of high-profile
retail clients, including Woolworths in South Africa, and Marks & Spencer,
Tesco, Sainsbury, World Flowers, TFC Holland and Univeg in Europe.
In Sub-Saharan Africa, Rollex is the market leader within its sector and
distributes chilled perishable produce by air and road freight.
The Acquisition
For the year ended 28 February 2007, Rollex reported an audited turnover of
US$39.5 million, an operating profit of US$1.9 million (US$0.3 million net
profit before tax after exceptionals) and had assets of US$15.8 million. Its
2008 management accounts show an increase in turnover to US$48.8 million.
The consideration for the 51% stake in Rollex, which includes the companies
Rollex (Pty) Ltd and Fresh Direct Ltd, is ZAR40 million (approximately US$5.0
million) in cash. The contract commits Lonrho to two further payments linked to
the EBITDA performance of Rollex. The two payments will respectively be due
after the February 2009 and February 2010 audited accounts are produced, each
calculated as Rollex EBITDA multiplied by 5.3 and then multiplied by 12.75 per
cent.
Rollex`s Operations
Rollex operates from a three hectare site, strategically positioned with
international airside access to OR Tambo Airport in Johannesburg, South Africa.
The operations include 3000 sqm of cooled warehouse and cold room facilities for
perishable produce and 1500 sqm for general storage warehousing and
consolidation purposes.
Rollex uses its own fleet of refrigerated motorised units to ensure express pull
back and delivery from the cargo handling terminals of all the major airlines at
OR Tambo, Johannesburg`s international airport, including British Airways,
Emirates, Virgin and South African Airways. As a fully bonded facility it
provides for seamless and quick handling. The state of the art facility is
operational 24 hours a day, 365 days a year and provides 38 blast chilling bays
controlled via a sophisticated Danfoss computerised temperature management and
logging system. Rollex develops and packs specialized combination and pre-
prepared vegetable and fruit packs to specifications set by its clients.
The site is approved by all the South African regulatory authorities. This
includes the Perishable Produce Export Control Board (PPECB) and National
Department of Agriculture for Fruit, vegetables, and flowers.
Rollex also operates a fish export division situated at Cape Town International
Airport.
Specialist in food produce delivery
South Africa is an internationally recognised production hub of quality
horticultural, fruit and fish products from southern Africa. Rollex procures,
handles and delivers a wide range of vegetables, fruit, salads, organic produce
and fish and has become a specialist procurer and handler of fruits such as
litchis, avocado, kumquats, grapes, passion fruit, stone fruit, pineapple,
strawberries, mangoes, papaya, and plums.
A wide range of core and processed vegetables predominantly from Africa are
exported to the northern hemisphere. Specific produce includes peas, petit pois,
carrots, beans, broccoli, spinach and leaf products, chilies, peppers, salad
onions and asparagus. A variety of cut flowers are also shipped on an ongoing
basis to Europe & the United Kingdom.
David Lenigas, Lonrho`s Executive Chairman commented:
"We are very excited about the value that Rollex brings to Lonrho`s investment
portfolio. Food processing and export from Africa to the blue chip retail
markets in Europe is a key African industry with huge growth potential and the
opportunity to create jobs in Africa. The Rollex management team are of an
extremely high quality and bring with them vast experience of operating in this
sector.
This significant acquisition allows Lonrho to enter into the fast growing agri-
processing market. The fruit and vegetable supply and distribution sector is
becoming a pan-African industry, and by acquiring 51% of the best operator in
the market, Lonrho will be in a strong position within the food distribution
sector and expand across the continent."
ENQUIRIES
Lonrho Plc +44 (0)20 7016 5105
David Lenigas, Executive Chairman +44 (0)7881 825 378
Geoffrey White, Chief Executive Officer +44 (0)7717 307 308
Emma Priestley, Executive Director +44 (0)7867 785 177
Pelham PR
Charles Vivian +44 (0) 20 7743 6672
+44 (0) 7977 297903
Candice Sgroi +44 (0) 20 7743 6376
+44 (0) 7894 462 114
Collins Stewart Europe : NOMAD to Lonrho
Hugh Field / Jonny Sloan +44 (0) 20 7523 8350
NOTES TO EDITORS
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful
business throughout Africa. The Company is listed on the London AIM stock
exchange (LONR). Lonrho is strategically focused on the development of business
opportunities in infrastructure, transportation, support services and natural
resources. The Company has over 20,000 shareholders and substantial
institutional backing to support its mandate to build a profitable business that
plays a fundamental role in the development of the African economy.
Since 2006, the Company has invested in or acquired control of:
Hotel Cardoso - www.hotelcardoso.co.mz
Lonrho Mining - www.lonrhomining.com
Luba Freeport - www.lubafreeport.com
Fly540 - www.fly540.com
Norse Air - www.norseair.co.za
Swissta Holdings - www.swissta.com
SA Independent Liner Services - www.saliners.com
Bytes and Pieces
Kwikbuild - www.e-kwikbuild.com
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 04/04/2008 10:22:01 Produced by the JSE SENS Department.
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