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CSP
CSP
CSP - Chemspec - Mica / ChemSpec announcement
Chemical Specialities Limited
Incorporated in the Republic of South Africa)
Registration number (2005/039947/06)
Share code: CSP
ISIN: ZAE000109427
("Chemspec" or "the Company")
MICA / CHEMSPEC ANNOUNCEMENT
ChemSpec and Mica today announced that they had reached an agreement in
principal regarding the sale to Mica Holdings Ltd of ChemSpec Franchises under
the brand name House of Paint.
The agreement will see both owned and franchised stores trading under these
brand names, continuing business as usual, but with the backing of the well
established management infrastructure of Mica.
Stores currently owned by ChemSpec will be governed by a Franchise Agreement
between ChemSpec and Mica and will in time be sold off to independent
Franchisees. Currently Franchised stores will continue with business as usual
in a seamless transaction for franchisees` customers and suppliers.
Bruce Mackinnon, Chief Executive of ChemSpec said, "ChemSpec is in a turnaround
process which is well on its way. As part of this turnaround process the
business is being simplified where ChemSpec returns to manufacturing and
distributing paint. This deal is in line with our strategy to exit retail and
increase turnover through our association with blue chip distributors. He went
on to say it eliminates a conflict of interest between ChemSpec and its broad
range of customers and simplifies the administration and distribution process".
Clifford Buchler, the Managing Director of Mica said, "It was a win win deal for
all parties. Mica understands the franchise model and will add value to this
franchise.The Mica Group specialises in the retail market and this franchise
offering provided with a broader base going into the future. The intention is
to grow this franchise model nationally which will automatically create greater
opportunities for suppliers.
We aim to develop the House of Paint brand whereby a broader range of paint and
allied products is available to the consumer from one dedicated paint outlet."
This deal is effective 1 October 2011.
Durban
21 September 2011
Corporate and designated advisor
Grindrod Bank Limited
Date: 21/09/2011 17:14:01 Produced by the JSE SENS Department.
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