| Mon 3 Sep 2001, 0:00 | | Barloworld Expands Motor Operations In Australia |
|
BARLOWORLD LIMITED
PRESS RELEASE
Barloworld, the international industrial brand management company, has more
than tripled the size of its Australian motor operations with three dealer
acquisitions in Melbourne.
It has acquired the Geoff Brady and Ferntree Gully Holden dealerships and
Kew Mitsubishi for A$ 47-million (R188-million/US$25 -million). The purchase
consideration was 5.5 times EBITDA (earnings before interest and tax,
depreciation and amortisation).
Ferntree Gully Holden and Geoff Brady, with combined annual revenues of
approximately A$ 200-million (R800-million), deal in new and used passenger
and light commercial vehicles and mark Barloworld's entry into Holden, one
of Australia's two leading automotive brands in terms of unit sales. Holden
is part of General Motors. In addition to Holden, Geoff Brady also
represents VW, Mitsubishi and Kia.
Kew Mitsubishi sells nearly a thousand new and used passenger vehicles
annually, and has a turnover of approximately A$20-million (R80-million).
Its trading area adjoins that of Barloworld's existing Australian Mitsubishi
dealer.
Barloworld entered the Australian motor market some four years ago and is
currently a dealer in Melbourne for Mercedes-Benz, Mitsubishi and Daewoo.
For the year ended 30 September 2000, Barloworld's Australian motor
operations earned profits before interest and tax of R17-million on revenues
of R367-million with net assets of R81-million at the end of the period.
Tony Phillips, chief executive officer of Barloworld said: "These
acquisitions, which meet our financial criteria of generating returns in
excess of cost of capital, are part of our global strategy to expand our
geographic footprint and the brands we manage. They form part of a
purposeful international expansion programme, the most recent component of
which was the R245-million acquisition of a group of laboratory equipment
companies in the UK that was announced on 1 August 2001."
Brandon Diamond, chief executive officer of Barloworld's motor business
commented: "The trading patterns in the Australian market are similar to
those in South Africa, but the market is twice the size and operates a
rationalised network of larger dealerships. We've done well in Australia and
expect accelerated growth from this area of our operations in the years
ahead as we build up our presence in Melbourne and use this base as a
springboard into other large centres."
For further information, please contact Mark Drewell, Head of Corporate
Communication at Barloworld Limited ph (+27 11) 445 1202, e-mail
mdrewell@barloworld.com or Brandon Diamond, CEO Barloworld Motor ph (+27 11)
286-1500, e-mail brandond@bmh.co.za.
3 September 2001
Additional notes on Barloworld Limited
Barloworld Limited, which is a global leader in industrial brand management,
has a primary listing on the JSE Securities Exchange South Africa and
secondary listings on the London Stock Exchange and various European
exchanges, employs approximately
24 000 people in 32 countries and had a turnover of R22 - billion ( 1.9 -
billion) for the year ended 30 September 2000. The company's share code is
BAW.
For more information visit www.barloworld.com
