| Mon 3 Aug 2009, 7:37 | | BVT - Bidvest - Bidvest expands its foodservice interests into Central and |
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BVT
BVT
BVT - Bidvest - Bidvest expands its foodservice interests into Central and
Eastern Europe
THE BIDVEST GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1946/021180/06)
Share code: BVT ISIN: ZAE000117321
("Bidvest")
Bidvest expands its foodservice interests into Central and Eastern Europe
BIDVEST, the international services, trading and distribution group, today
(August 3 2009) announced a major expansion of its international foodservice
interests.
The JSE-listed company has concluded an agreement to acquire the Nowaco Group,
the leading foodservice player in the Czech Republic and Slovakia (Nowaco) and
Poland (Farutex), from JPMorgan Partners and Bancroft Private Equity for an
enterprise value of 250 million euros.
Bidvest`s foodservice interests comprise 3663 First for Foodservice, a market
leader in the United Kingdom, the leading foodservice businesses in both
Australia (Bidvest First for Foodservice) and New Zealand (Bidvest New Zealand),
Angliss Hong Kong and Angliss Singapore and Caterplus in Southern Africa.
Bidvest Chief Executive Brian Joffe commented: "Central and Eastern Europe is a
strategic market with significant growth opportunities in the foodservice
industry. The acquisition of the Nowaco Group will complement our existing
highly successful international foodservice businesses and marks another
building block in the internationalisation of our foodservice interests."
"The Nowaco Group provides a unique opportunity to acquire the market-leading
Central and Eastern European foodservice business, with sufficient scale to
provide potential customer and purchasing synergies. This is a consistently
highly profitable business with a strong management team and gives us a foothold
and entry point into the broader Central and Eastern European markets."
"Once integrated into the Bidvest foodservices division and with our management
assistance, we believe it will contribute significantly to Bidvest Group
performance over time."
The Nowaco Group is the number one delivered wholesaler to the foodservice and
independent retail markets in Central and Eastern Europe. Nowaco focuses on the
Czech Republic and Slovakia while Farutex serves the Polish market.
The Nowaco Group`s core business is sourcing and distributing a broad multi-
temperature product range comprising approximately 6 800 stock-keeping units to
42 000 delivery addresses, making on average 8 300 deliveries per day.
The Nowaco Group`s diverse base of customers operates across the commercial
(hotels, restaurants and cafeterias) and institutional (school, business and
public catering) foodservice sectors as well as in the independent retail
sector.
Nowaco`s delivered wholesale business is supplemented by two proprietary
heritage consumer brands, NOWACO and Prima, with category leadership in frozen
food and ice cream. The two brands have secured Nowaco a key position in
supplying the international retail and hypermarket sectors in the Czech Republic
and Slovakia, where it is viewed as the local champion and commands strong brand
loyalty.
The transaction, to be funded initially from Bidvest`s banking facilities, is
expected to become effective in the third quarter of the 2009 calendar year.
Bidvest intends to raise equity to fund approximately 50% of the enterprise
value.
The agreement is subject to clearance from the European Union competition
authorities."
ISSUED ON BEHALF OF: THE BIDVEST GROUP LIMITED
BY: CLEAR DISTINCTION COMMUNICATIONS
BIDVEST CONTACTS: Brian Joffe (Chief Executive)
Tel: (011) 772-8704
David Cleasby (Investor Relations)
Tel : (011) 772-8706
Mobile: 083 228 1810
CONSULTANCY CONTACT: Carol Dundas
Tel: (011) 444-0650
Mobile: 083 447-6648
Date: 03/08/2009 07:37:01 Produced by the JSE SENS Department.
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